Exploit On Polygon Contracts Extract $15M, Here Are The Details
January 23 2024 - 8:00PM
NEWSBTC
The play-and-own mobile gaming platform GAMEE suffered an exploit
of its GMEE token contracts on Polygon that led to the theft of 600
million GMEE tokens and left the crypto community pondering
questions. Related Reading: Solana-Based Aurory Suffers Devastating
Exploit: 80% Of Liquidity Gone GAMEE Confirms $15M Exploit On
Polygon On January 22, GAMEE Token’s official X (formerly Twitter)
account advised its users to refrain from engaging with the digital
asset while their team investigated the GMEE token-related security
comprise it had just suffered. The GMEE token is an ERC-20 utility
token “designed to be the currency of access, action, and
governance within the GAMEE ecosystem,” as their website states. 🚨
$GMEE | URGENT There has been a security incident involving the
GMEE token. As a precautionary measure, we advise all users to
refrain from engaging with $GMEE until further notice. Our team is
actively investigating the situation, and updates will be provided
soon. — GMEE Token (@GAMEEToken) January 22, 2024 Before the
official announcement, crypto users quickly noticed the token’s
sudden price crash and the transactions behind it. This left GAMEE
users and the general crypto community wondering if an exploit had
occurred. In the early hours of January 23, GAMEE’s team returned
to the X platform to explain what happened and the steps to come.
The thread explains that their preliminary investigation indicated
that the GMEE token contracts on Polygon had been compromised via
unauthorized GitLab access. This compromise resulted in the theft
of 600 million GMEE tokens worth approximately $15.28 million at
the time of the exploit. The compromised tokens were immediately
converted to ETH and MATIC and exchanged via various decentralized
exchanges (DEXs) in the following hours, drastically impacting the
GMEE token price. The team behind GAMEE explained that after
noticing the Polygon GMEE deployer address was compromised, they
secured the token contract ownership and all associated contracts
by transferring ownership to a “new secure address.” The team also
clarified that only proprietary team token reserves were affected,
and the exploit did not affect assets owned by the community, as
“GAMEE does not custody or manage any community-owned assets.”
GAMEE expressed its understanding of how the impact of the
unauthorized transactions could have affected the GAMEE community,
as it led to price volatility and limited use of the GMEE token
while investigations were taking place. The next steps for GAMEE
will consist of an impacted user identification process to evaluate
the best way to support the affected part of the community.
Additionally, they plan to provide a real-time update on the
details that further investigations will provide as an effort to
keep trust and transparency. Lastly, the user was advised to
exercise caution “given the volatile market conditions and
potential liquidity impacts driven by CEX measures.” GMEE’s Violent
Price Drop Around the time of the exploit, the GMEE token had been
trading at $0.02554112, according to CoinGecko’s data, and it had
been previously sitting at the $0.027-$0.026 range throughout the
weekend. Shortly after the exploit, the prince crashed to
$0.01155577, reaching its lowest point of $0.00897251 in the early
hours of today. It’s worth noting that many saw the price crash as
a possibly once-in-a-lifetime opportunity to profit. Various users
shared that they had bought the dip and even advised others to do
it. One X user said, “One man’s trash is another man’s treasure.”
At writing time, the GMEE token trades at $0.016999, a 31.5%
decline in the last 24 hours. Related Reading: Avalanche-Based
Stars Arena Falls Victim To A $3 Million Exploit, TVL Tanks By 100%
GAMEE is currently trading at $0.016999 in the hourly chat. Source:
GMEEUSDT on TradingView.com Featured Image from Unsplash.com, Chart
from TradingView.com
Polygon (COIN:MATICUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Polygon (COIN:MATICUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024