Animoca-backed Gamee suffered the theft of 600 million GMEE tokens due to token contract abuse.
Posted: January 23, 2024 7:38 AM Updated: January 23, 2024 7:38 AM
Correction and fact check date: January 23, 2024, 7:38 AM
briefly
Polygon (GAMEE)’s Gamee token contract suffered ‘unauthorized access’ and 600 million tokens were stolen.
Gamee, the blockchain gaming project backed by Animoca Brands, confirmed that Polygon’s Gamee token (GMEE) contract experienced “unauthorized access” on Tuesday, resulting in 600 million tokens being stolen.
Gamee revealed this morning that the Polygon GMEE distributor address was compromised through unauthorized GitLab access, resulting in the tokens being stolen. The stolen tokens were later converted to ETH, the Ethereum native token, and MATIC, Polygon’s native token. The total value of tokens affected at the time of the incident was $15 million.
“Over the next few hours, the exploiter traded the compromised tokens through various DEXs, affecting the price of GMEE tokens on several exchanges,” Gamee said in the social media X publication.
The project emphasized that any unauthorized access to the token contract would be secure. According to CoinGecko data, the GMEE token price has fallen 64% in the past 24 hours, falling below $0.01.
“This exploit only affected proprietary team token holdings and no community-owned assets were compromised. Gamee does not store or manage community-owned assets,” Gamee said.
Currently, the platform has temporarily suspended liquidity provision for all DEXs. All centralized exchanges with GMEE markets have been notified to temporarily disable deposits and freeze tokens involved in the attack. Gamee conducts a comprehensive security review of all existing procedures and contracts and initiates legal proceedings in cooperation with law enforcement agencies.
The project team added that it will identify additional users affected by the incident and plan to provide support to its loyal community during this difficult period.
Dangerous security violation game
Gamee is a play-to-earn gaming platform that allows users to participate in gaming missions, participate in tournaments, and win prizes. With over 30 million users, the platform aims to convey the value of blockchain to a mainstream gaming audience while recognizing and rewarding gaming skill, effort, and loyalty. Acquired by Animoca Brands in 2021, Gamee has worked with organizations such as Manchester City FC, Atari and Bratz over the years to access global brand IP.
Abuse, unauthorized access, and token theft have become recurring problems in blockchain projects, and the gaming realm is not exempt from these security concerns.
Last year, Sandbox, a blockchain-based metaverse company, faced a security breach when an unauthorized third party accessed employees’ computers. The attackers then sent fraudulent emails to users of the platform. The email invited users to access games on the platform and included a link that, when clicked, could install malware on the user’s computer.
The installed malware gives third parties control over the affected user’s computer, providing them with access to personal information.
Despite unauthorized access and token theft, Gamee is committed to ensuring community support and protecting token contracts during this difficult period.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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