CEO Axie Infinity transferred three million USD before announcing it was hacked

 Nguyen Thanh Trung transferred three million USD worth of AXS tokens to Binance, but he explained it was to provide liquidity to users.

The incident was discovered by a little-known YouTuber named Asobs on July 29. This person said he analyzed data based on transaction history and discovered a wallet address that may belong to CEO Axie Infinity. Three hours before the game's Ronin network announced it was hacked and had $600 million worth of crypto stolen on March 29, Thanh Trung's wallet moved 48,838 AXS tokens out of the Ronin network and put it on Binance.

The transaction of a wallet is believed to be by CEO Nguyen Thanh Trung at the end of March.
Transactions of a wallet attributed to CEO Nguyen Thanh Trung at the end of March.

This is considered a large transaction, because at that stage, the total average daily volume of the Ronin network was about 55,000 AXS, according to Abernathys. In addition, the listing on Binance also raises questions about the purpose.

According to Bloomberg, transaction data is inherently public on the blockchain and can be seen by anyone before. However, if the transaction was from someone from Axie Infinity, this would be unusual. Because when the hack information is published, "everyone understands that the network can be temporarily locked, then holders tend to sell tokens for cash and Binance is often one of the first options".

Sky Mavis spokesperson Kalie Moore later confirmed the token transfer from the CEO's wallet to Binance. However, the person said the project must do so in the general interest of the in-game economy, in order to ensure the provision of liquidity to users by accessing funds through Binance.

“We understood then that our position and options would be better with more AXS tokens on Binance. This gives us more flexibility in our pursuit of loan and capital protection options. necessary," Moore said.

She also affirmed that choosing the CEO's secret personal wallet instead of Axie Infinity's official wallet was to avoid being tracked. Short sellers can monitor the aforementioned official wallet and execute orders before the news is announced.

On Twitter, Nguyen Thanh Trung also reiterated the above points, and affirmed that the allegations of insider trading are "false and baseless". According to this CEO, before withdrawing $3 million, the founding team even deposited $7.5 million worth of tokens into Ronin Network before the bridge closed.

Nguyen Thanh Trung also took personal responsibility for the hack, and said that since then, the project has continuously improved and built new features. In addition, the Ronin bridge has reopened. The user's tokens have been returned in full to what they were before the attack.

The attack on the Ronin network of the game Axie Infinity was announced at the end of March. Hackers took control of 5/9 validator nodes, thereby making two money transfers including 173,600 Ethereum and 25.5 million USDC. With a value of each ETH at that time was 3.4 thousand USD, the amount of cryptocurrency taken away was equivalent to 615 million USD, becoming one of the largest cryptocurrency hacks in history.

Three months later, investigations revealed that a Sky Mavis employee had been subjected to a phishing attack. Fraudsters create a ghost company, pretend to recruit this person, then spread malicious code through a PDF file of employment contract, thereby infiltrating the system.

About finding Trung's wallet, YouTuber Asobs said that the wallet was originally just a string of characters, but he verified it through the transaction history. This wallet and a few others have regular token receipts, like salaries. At the same time, in November 2020, this address received AXS right in the token payment in the project's roadmap. Receiving the most tokens indicates that this may be the founder's wallet.
Previous Post Next Post


{ads} x