Sky Mavis Co-Founder Loses $9.7M in Ether to Hackers

In a shocking revelation, Jeffrey Zirlin, the co-founder of Sky Mavis and creator of the popular blockchain game Axie Infinity, announced that two of his cryptocurrency wallets were compromised in a hacking incident. The security breach resulted in the theft of approximately 3,248 *ETH*, valued at around $9.7 million. The stolen funds were siphoned off through the Ronin Bridge and laundered through the crypto mixer Tornado Cash.

The cyber attack, which took place on a Friday morning in Asia, was identified by blockchain security firm PeckShield. The firm pinpointed the cause of the breach as a “wallet compromise,” enabling the unauthorized transfer of funds. The attack targeted Zirlin’s accounts rather than the broader infrastructure of the Ronin chain or Sky Mavis operations.

SKY MAVIS CO-FOUNDER'S WALLETS HIT IN $9.7M ETH EXPLOIT

– Jeffrey Zirlin, co-founder of @SkyMavisHQ, and the creator of the popular Axie Infinity game, revealed that two of his wallets fell victim to a hack.

– According to @PeckShield approximately 3,248 Ether, equivalent to… https://t.co/NBGMLulc1A pic.twitter.com/GOXQ88WIWY

— BSCN (@BSCNews) February 23, 2024

Zirlin’s Response

Following the incident, Zirlin took to social media to address the situation, expressing his determination to overcome the challenge and continue his mission to bring economic freedom to internet users, starting with gamers. He emphasized that the attack was limited to his accounts and had no relation to the validation or operations of the Ronin chain. Furthermore, Zirlin confirmed that Sky Mavis has stringent security measures for all chain-related activities and thanked the community for their support during this difficult time.

This has been a tough morning for me. 

Two of my addresses have been compromised.

The attack is limited to my personal accounts, and has nothing to do with validation or operations of the Ronin chain.

Additionally, the leaked keys have nothing to do with Sky Mavis operations.…

— Jihoz.ron (@Jihoz_Axie) February 23, 2024

Despite the significant financial loss, Zirlin reassured the community that the Ronin chain, integral to the operation of Axie Infinity, remained secure and unaffected by the incident. The hack did not impact the validation or operational aspects of the blockchain. The incident underscores the ongoing security challenges within cryptocurrency, highlighting the importance of robust security protocols for individual and institutional stakeholders.