Connect with us

Axie Infinity News

Axie Infinity CEO Denies Claims of Insider Trading Despite Moving $3m Before Hack Disclosure

mm

Published

 on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

Axie Infinity CEO Denies Claims of Insider Trading Despite Moving $3m Before Hack Disclosure

This year has brought a string of massive DeFi hacks, with the one that hit Axie Infinity back in March 2022 being one of the largest ones that ever hit the crypto industry. Back then, Axie Infinity lost $622 million in digital currency to an unknown attacker. However, now, the CEO of Sky Mavis, the studio that created Axie, revealed that he moved $3 million in tokens before disclosing the hack to the public.

Trung Nguyen, the CEO of Sky Mavis, admitted to moving the funds off of Ronin following a recent report that analyzed blockchain data, revealing the transaction involving $3 million in AXS. The transaction took place after the hack but only three hours before Sky Mavis revealed that the attack took place.

The accusations of insider trading are false

The attack was disclosed a full week after it took place, and after that, the Axie network remained closed until late June. The project’s CEO moved the funds to Binance, according to the blockchain analysis, which was later confirmed by the Sky Mavis representative, Kalie Moore.

She added that, back then, the studio understood its position and options, and it decided that having its funds on Binance is the best course of action. It was not a move made to gain an advantage through insider trading but one that would enable flexibility to pursue different options for securing loans and capital. Moore also noted that the funds came from the CEO’s own wallet so that short-sellers would not be able to react before the news of the hack went public.

She concluded that all allegations of other motives for making the transactions are entirely false and baseless.

The transaction was a part of the plan

Following the report that revealed the transaction, Nguyen himself commented on the move, stating that the transaction was made after the project consulted with Binance. The idea was to secure the funds in order for Sky Mavis to use them for aiding in providing user liquidity while the bridge was being restored.

He then addressed the accusations of insider trading, and just like Moore, he called them false and baseless. He also added that the Founding Team deposited $7.5 million from a known Axie multi-sig wallet to Ronin just before the bridge closed in order to avoid triggering short-sellers.

He further added that Axie is his life’s work and that he takes ownership of the breach, which will be used as a learning experience. Finally, he reminded the community that the bridge was re-opened with all players’ funds backed 1:1 and that this is an important part of the story that the media chose to “conveniently ignore,” as it “doesn’t fit their predetermined narratives.”

However, despite this, the transparency that comes with blockchain technology can speak for itself and show the truth to the community.

To learn more visit our Investing in Axie Infinity guide.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.