In a recent development, Animoca-backed Gamee confirmed that its Gamee token (GMEE) contracts on the Polygon bitcoin network experienced unauthorized access. As per a post on X (formerly called Twitter), this security breach led to the unfortunate theft of a staggering 600 million tokens.
Gamee Loses $15M Worth of Tokens
Notably, this incident underscores the ongoing challenges that blockchain-based projects face in ensuring the security of their decentralized systems.
Gamee, has been actively leveraging the Polygon network to enhance scalability and reduce transaction costs. However, the unauthorized access to its GMEE contracts has exposed vulnerabilities in the system.
As per the post, the affected tokens worth about $15 million were converted to Ethereum (ETH) and MATIC, as such, impacting the GMEE token price across various exchanges. Gamee token dropped by 54% over the past 24 hours, according to data from Coingecko.
Incident Overview:Our preliminary investigations indicate that, at 22/1 6:31 pm (UTC), Polygon $GMEE deployer address may have been compromised via unauthorized GitLab access, leading to the theft of 600M $GMEE tokens and subsequent unauthorized conversions to ETH and MATIC.…
— GMEE Token (@GAMEEToken) January 23, 2024
Gamee Response to the Exploit
In response to the incident, Gamee mentioned that it is conducting a thorough investigation to identify the vulnerabilities that were exploited. However, the firm acknowledged that the exploit affected proprietary team token reserves only, as no community-owned assets had been compromised.
Gamee is also doing everything possible to ensure security protocols, implement additional layers of protection, and potentially compensate affected users, as part of its strategy to rebuild trust.
As the blockchain industry continues to mature, incidents like the unauthorized access to Gamee’s GMEE contracts highlight the importance of proactive security measures. Developers, investors, and users must collectively work towards establishing a more robust and resilient ecosystem, ensuring the long-term success of decentralized technologies.
Animoca Brands Reports Over $2B in Cash and Tokens
Recall that in December, the Hong Kong-based Web 3.0 group revealed that it has more than $2 billion in assets, making it one of the key players in the crypto sector. Per the breakdown, Animoca Brands has $172 million in cash and stablecoins, $330 million in third-party tokens, and $1.6 billion in off-balance sheet tokens.
Notably, this value encompasses Animoca Brands’ investments in prominent Web3.0 projects including infrastructure and gaming.
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