Animoca-Backed Gamee Faces Major Token Contract Exploit on Polygon

Animoca-Backed Gamee Faces Major Token Contract Exploit on Polygon

UTC by Benjamin Godfrey · 3 min read
Animoca-Backed Gamee Faces Major Token Contract Exploit on Polygon
Photo: GMEE Token / X

The attack on Gamee draws parallels to the Binance Smart Chain attack that occurred two years ago. In that incident, attackers drained an estimated $100 million worth of crypto assets. 

Gamee, a blockchain gaming project backed by Animoca Brands, recently confirmed a major exploit in its Gamee (GMEE) token contracts on the Polygon network. The breach resulted in unauthorized access to its token contracts, leading to the theft of a staggering 600 million tokens valued at $15 million.

The Gamee Exploit Incident

Gamee reported the security breach in an official post on X, revealing that its Polygon GMEE deployer address was compromised through unauthorized GitLab access. The breach occurred at approximately 6:31 p.m. UTC, leading to the theft of tokens, which were subsequently converted to Ethereum (ETH) and Polygon’s native token MATIC.

The attacker then took advantage of various Decentralized Exchanges (DEXs) to swap the compromised tokens, causing a notable impact on the GMEE token price across multiple exchanges.

As of the latest update, the GMEE token price has plummeted by 55% over the past 24 hours, dropping below $0.01 according to CoinGecko data. This substantial loss in value underscores the severity of the exploit and its immediate consequences on Gamee’s token.

Notably, Gamee acted swiftly to contain the situation, securing all unauthorized access to its token contracts. The company assured its community that only proprietary team token reserves were affected, emphasizing that no community-owned assets had been exploited. The Gamee team expressed their commitment to identifying impacted users and outlined plans to support the community through this challenging period.

The exploit has undoubtedly left an impact on the Gamee community, with users expressing concerns about the security of their assets and the overall reliability of blockchain gaming platforms.

However, the transparent and proactive response from Gamee has helped instill some level of confidence in the community, demonstrating the platform’s commitment to addressing and resolving security issues promptly.

Crypto Market Vulnerabilities

The attack on Gamee draws parallels to the Binance Smart Chain attack that occurred two years ago. In that incident, attackers drained an estimated $100 million worth of crypto assets.

Binance Smart Chain’s quick decision to halt the chain proved crucial in limiting the damage and thwarting the attackers’ intentions to siphon even more funds. The similarities between the two incidents highlight the persistent challenges and vulnerabilities facing blockchain networks and gaming projects.

With cyber-attacks on the rise, the crypto market has witnessed remarkable losses, as evidenced by the November statistics showing 47 crypto exploits and breaches resulting in a cumulative loss of around $349 million, according to insights from the SlowMist Blockchain Hacked Archive. Notable attacks that occurred last year include those on Onyx Protocol, TrustPad, Poloniex, dYdX, and Kronos Research.

Overall, the Gamee token contract exploit serves as a crucial reminder of the ongoing challenges faced by blockchain projects, particularly in the gaming sector. As the industry continues to grow, it becomes imperative for protocols to prioritize security and implement robust measures to safeguard user assets.

Altcoin News, Cryptocurrency News, News
Related Articles