Exploit On Polygon Contracts Extract $15M, Here Are The Details

The play-and-own cellular 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 neighborhood pondering questions.

GAMEE Confirms $15M Exploit On Polygon

On January 22, GAMEE Token’s official X (previously Twitter) account suggested its customers to chorus from partaking with the digital asset whereas their workforce investigated the GMEE token-related safety comprise it had simply suffered.

The GMEE token is an ERC-20 utility token “designed to be the foreign money of entry, motion, and governance inside the GAMEE ecosystem,” as their web site states.

🚨 $GMEE | URGENT

There was a safety incident involving the GMEE token. As a precautionary measure, we advise all customers to chorus from partaking with $GMEE till additional discover.

Our workforce is actively investigating the scenario, and updates will likely be supplied quickly.

— GMEE Token (@GAMEEToken) January 22, 2024

Earlier than the official announcement, crypto customers rapidly observed the token’s sudden worth crash and the transactions behind it. This left GAMEE customers and the final crypto neighborhood questioning if an exploit had occurred.

Within the early hours of January 23, GAMEE’s workforce returned to the X platform to elucidate what occurred and the steps to return.

The thread explains that their preliminary investigation indicated that the GMEE token contracts on Polygon had been compromised through unauthorized GitLab entry.

This compromise resulted within the theft of 600 million GMEE tokens price roughly $15.28 million on the time of the exploit. The compromised tokens had been instantly transformed to ETH and MATIC and exchanged through varied decentralized exchanges (DEXs) within the following hours, drastically impacting the GMEE token worth.

The workforce behind GAMEE defined that after noticing the Polygon GMEE deployer tackle was compromised, they secured the token contract possession and all related contracts by transferring possession to a “new safe tackle.”

The workforce additionally clarified that solely proprietary workforce token reserves had been affected, and the exploit didn’t have an effect on property owned by the neighborhood, as “GAMEE doesn’t custody or handle any community-owned property.”

GAMEE expressed its understanding of how the impression of the unauthorized transactions may have affected the GAMEE neighborhood, because it led to cost volatility and restricted use of the GMEE token whereas investigations had been happening.

The subsequent steps for GAMEE will encompass an impacted consumer identification course of to judge the easiest way to assist the affected a part of the neighborhood. Moreover, they plan to supply a real-time replace on the small print that additional investigations will present as an effort to maintain belief and transparency.

Lastly, the consumer was suggested to train warning “given the risky market circumstances and potential liquidity impacts pushed by CEX measures.”

GMEE’s Violent Worth Drop

Across the time of the exploit, the GMEE token had been buying and selling at $0.02554112, in line with CoinGecko’s knowledge, and it had been beforehand sitting on the $0.027-$0.026 vary all through the weekend.

Shortly after the exploit, the prince crashed to $0.01155577, reaching its lowest level of $0.00897251 within the early hours of at present.

It’s price noting that many noticed the worth crash as a probably once-in-a-lifetime alternative to revenue. Numerous customers shared that that they had purchased the dip and even suggested others to do it. One X consumer said, “One man’s trash is one other man’s treasure.”

At writing time, the GMEE token trades at $0.016999, a 31.5% decline within the final 24 hours.

GAMEE is at the moment buying and selling at $0.016999 within the hourly chat. Supply: GMEEUSDT on TradingView.com

Featured Picture from Unsplash.com, Chart from TradingView.com

Disclaimer: The article is supplied for instructional functions solely. It doesn’t signify the opinions of NewsBTC on whether or not to purchase, promote or maintain any investments and naturally investing carries dangers. You’re suggested to conduct your personal analysis earlier than making any funding selections. Use data supplied on this web site fully at your personal threat.