Trung Nguyen, co-founder and chief executive officer of Axie Infinity, has denied engaging in insider trading just before the game’s parent company, Sky Mavis, said it had been the victim of a $600 million breach.
Between the March assault and the formal statement, Bloomberg reports that a wallet linked to Nguyen transferred almost 50,000 AXS tokens, worth around $3 million, from the Ronin blockchain to Binance.
Shortly after the transfer, Sky Mavis froze the assets of players, rendering them inaccessible inside the game.
Bloomberg hypothesises that this may have been the first stage in selling the tokens before they were locked. However, Sky Mavis dismissed this accusation as “baseless” and said that the assets were really sent to Binance to stabilise the company’s finances, offer liquidity, and thwart individuals who would want to benefit from the breach.
“At the time, we felt that our position and alternatives would improve if we had more AXS on Binance,” a representative for Sky Mavis stated (via Bloomberg).
“The Founding Team opted to move it from this wallet to prevent short-sellers who follow official Axie wallets from gaining an advantage.”
According to Bloomberg’s blockchain specialists and analysts, a number of additional wallets believed to belong to Sky Mavis workers also conducted a lot of significant transactions during this period. However, the organisation declined to confirm this, speculating that these tokens belonged to business partners or contractors.
Shortly as Sky Mavis clarified the situation, Nguyen proceeded to Twitter to aggressively refute any impropriety allegations.
Nguyen referred to Axie Infinity as his “life’s work” and said that his team was “in regular touch with Binance to discuss the shutdown of the bridge and how to guarantee that user monies were refunded as quickly as feasible.”
In addition, he denies any allegations of insider reading and notes that the game’s creators really placed funds into Ronin Network.