U.S. Government Recovers $30M of Hacked Axie Infinity’s Funds

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U.S. Government Recovers $30M of Hacked Axie Infinity’s Funds

United States authorities, in collaboration with the blockchain analytic firm, Chainalysis, recovered $30 million of stolen crypto assets, according to reports. The stolen funds belong to the online video game firm Axie Infinity, which suffered massive hacks earlier in the year.

Authorities Recover $30 Million in Hacked Crypto Funds

The U.S. law enforcement recovery of the stolen funds is reported to be just a percentage of what the hackers have moved from Axie Infinity. 

It is also reported that the play-to-earn gaming platform lost over $500 million to the North Korean hacking unit, the Lazarus Group. Authorities are still tracking the group’s activities to see how it can reclaim other stolen assets. 

However, the latest development signifies a big win for law enforcement and the digital currency industry.

According to Chainalysis, this is also the first time that crypto assets carted off by the Lazarus Group have been recovered.

The North Korea-based hacking unit is notorious for attacking blockchain platforms and wiping out their funds. It has been fingered as behind significant attacks that the crypto industry has experienced.

Moreover, Chainalysis revealed that the group often utilized Tornado Cash to mix Ether before moving it to several addresses. However, the United States sanctioned the crypto-mixing firm for facilitating money laundering. The Lazarus Group device is an alternative way to move stolen assets.

Their latest approach is using blockchain bridges to swap funds into different coins. Still, Chainalysis noted that it has the expertise to track the cross-chain movements of tokens.

The tracking platform confirmed that most of the stolen funds from Axie Infinity are still stored on the blockchain. This shows that the attackers find it difficult to move stolen assets to convert them into fiat.

Chainalysis disclosed that more of the same recovery would happen because it has what it takes to go after stolen funds.

Sky Mavis Adds Google Cloud to Facilitate Transaction

The parent company of Axie Infinity, Sky Mavis, has announced it has integrated Google Cloud to validate a transaction on its Ronin network. The Ronin Network is an Ethereum-based sidechain to power NFT games. With the latest partnership, Google Cloud will provide the protocol’s security and facilitate transactions.

Reports show that Google Cloud has been a strategic partner for the game developer since 2020. The partnership shows that Sky Mavis intends to utilize cloud systems to secure its platforms better after the Ronin networks occurred. 

The game developer seeks to utilize the cloud in its blockchain platform to help improve innovation and create user value. The Ronin network requires secure infrastructures to help it offer users a safe and immersive gaming experience.

Meanwhile, Google Cloud is currently the 18th validator to partner with Sky Mavis. Since the Ronin Network lost a whopping $552 million worth of crypto assets in March to high-profile hacking, the company has worked tirelessly to further beef up its validation system.

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.