The CEO of Axie Infinity denies insider trading just before the $600M hack

Trung Nguyen, co-founder and CEO of Axie Infinity, has refuted allegations that he engaged in insider trading just before Sky Mavis, the game's parent company, revealed it had been the victim of a massive $600 million hack.

According to Bloomberg, a wallet belonging to Nguyen transferred almost 50,000 of the game's native AXS currency, worth about $3 million, from the Ronin blockchain to Binance between the hack in March and an official statement.

Soon after the move, Sky Mavis locked users' assets in the game by freezing their assets.

Bloomberg makes the assumption that this might have been the first action taken to pay out the tokens before they were secured.

This assertion, according to Sky Mavis, is "baseless," and the money was really sent to Binance to stabilize the business's finances, offer liquidity, and confuse potential hackers.

A Sky Mavis representative said,

"At the moment, we realized that the more AXS we had on Binance, the better our position and alternatives would be."

Bloomberg's blockchain analysts and researchers discovered that many other wallets that were allegedly used by Sky Mavis workers also made a number of sizable transactions around this period.

The company, however, declined to acknowledge that this was the case and instead offered the possibility that these tokens might have belonged to contractors or business partners.

Sky Mavis' attempt to clear up the misunderstanding was quickly followed by Nguyen's own use of Twitter to aggressively refute any claims of impropriety.

Nguyen, who described Axie Infinity as his "life's work," claimed that his team and Binance "were in close contact to negotiate the shutting of the bridge, and how to ensure user monies would be refunded as quickly as feasible."

The Latest News