In a significant development within the cryptocurrency landscape, Norway has successfully returned nearly $6 million worth of stolen crypto assets to blockchain company Sky Mavis. This recovery is part of efforts to address the $620 million hack that occurred in 2022. Sky Mavis, the creator of the popular online game Axie Infinity, announced this news through a social media post. This incident highlights ongoing international cooperation in tackling cryptocurrency-related crimes.
Sky Mavis Acknowledges Support
Sky Mavis extended its gratitude to the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime for their role in freezing, recovering, and returning $5.7 million of the stolen assets. The company also appreciated the FBI’s relentless efforts in tracking and retrieving these assets. This collaboration showcases the importance of global cooperation in combating cybercrime in the cryptocurrency sector.
Axie Infinity, launched in 2020, revolutionized the gaming world with its play-to-earn model, enabling players, especially in developing nations, to earn significant income. The game not only gained millions of players but also became a cultural phenomenon during its peak. However, a major crypto crash in early 2022 led to a dramatic decline in the value of the game’s tokens and a decrease in daily active users.
Challenges and Recovery
In early 2022, the Ronin blockchain, which powers Axie Infinity, was hacked by North Korean cybercriminals, marking one of the largest cyber heists. The Sky Mavis team disclosed that about 15% of the recovered assets would cover the costs and expenses of the recovery operation, including fees for blockchain forensics experts like Chainalytics, legal advisors, and accountants. The remaining 85% will be allocated to the Axie Infinity treasury.
Additionally, Sky Mavis noted that approximately $40 million worth of separate assets remain frozen by law enforcement, and the timeline for recovering these assets is still unclear. This ongoing effort underscores the complexities involved in asset recovery and the persistent challenges faced by companies in the cryptocurrency domain.
Key Takeaways
- Norway returned approximately $6 million worth of stolen crypto assets to Sky Mavis.
- Sky Mavis acknowledged the efforts of Norwegian authorities and the FBI in the recovery process.
- 15% of the recovered assets will cover recovery expenses, while 85% will be allocated to the Axie Infinity treasury.
- About $40 million worth of assets are still frozen, with an uncertain recovery timeframe.
This incident highlights the importance of international cooperation in addressing cybercrime and the challenges involved in asset recovery within the cryptocurrency industry.