Axie Infinity’s Ronin network was hacked after a fraudster broke into his network and stole $622 million in assets. The hacker reportedly posted fake job postings with malicious web links that made their way onto the Ronin network. The hack took place on March 29, 2022 and the scammer stole 173,600 ETH and 25.5 million USDC before disappearing. The Ronin Bridge had been shut down for three months for security and upgrade purposes and was back online on June 28. However, Bloomberg has reported that the CEO of Axie Infinity (Sky Mavis) Mid-nguyen transferred $3 million worth of AXS tokens from the Ronin Network to the Binance exchange just three hours before the hack.
After Bloomberg broke the news, allegations of insider trading by Nguyen started making the rounds on social media. Several users took to Twitter, accusing it of indulging in a potential insider trading.
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Axie Infinity CEO Denies Insider Trading Claims
Trung Nguyen immediately took to Twitter and put out the fire that accused him of indulging in insider trading. He called the allegations of insider trading pinned against him “baseless and false.”
“This story contains speculation about insider trading. These allegations are unfounded and false.” He went on, “In fact, the Founding Team even deposited $7.5 million from a well-known Axie multi-sig wallet TO Ronin Network prior to the bridge closing to prevent short-sellers from watching.”
Nguyen revealed that he took full responsibility for the security breach as it occurred under his supervision. He stated that the hack was a learning experience and that the team will prevent such cases from happening again.
“My life’s work is Axie Infinity and the community we have created together. I take responsibility for the security breach and will use it as a learning experience.” he tweeted.
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At the time of writing, Axie Infinity (AXS) was trading at $19.12 and is up 16.1% in the last 24 hours. AXS is also up nearly 38% in the past 14 trading days, bringing some decent gains to investors this month.