A series of unauthorized transactions on the Polygon network have been identified, leading to a loss bitcoin of approximately $7 million.
The affected token, $GMEE, suffered a significant compromise, with initial investigations pointing to a lapse in access control. Since the breach was revealed, the GAMEE token has plummeted nearly 20% in the past hour.
The root of the breach appears to be the compromise of the $GMEE deployer address. Cyvers analysts told Crypto.News that the breach occurred around 6:31 PM UTC on January 22nd. They suspect that an unauthorized access to GitLab allowed the attackers to steal a staggering 600 million $GMEE tokens.
🚨ALERT🚨Today, our AI powered system has detected suspicious transactions involving @GAMEEToken on #Polygon with loss of $7MRoot cause appears to be a lack of access control, possibly resulting in the compromise of the $GMEE deployer address. Attacker also withdraw significant… pic.twitter.com/NetROboTnO— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) January 23, 2024
The attackers swiftly converted the stolen tokens into $MATIC, and some of these funds were transferred, or ‘bridged,’ to the Ethereum blockchain. Cyvers’s investigation further revealed that the Ethereum address involved in this incident had interactions with WhiteBit, a cryptocurrency exchange. This suggests a potential attempt to launder the stolen funds through established crypto-financial channels.
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Summary:A few hours ago, there was unauthorized access to the $GMEE token contracts on Polygon leading to the theft of funds. Gamee team has secured all unauthorized access to the token contracts. The exploit affected proprietary team token reserves only, and no community-owned…— GMEE Token (@GAMEEToken) January 23, 2024
Several gaming tokens have already taken a major hit this week due to Bitcoin’s latest decline. This breach will potentially add more challenges for the sector. Overall, there has been a renewed surge in security breaches this week. Yesterday, liquidity management platform Concentric also experienced a breach on the Arbitrum network, costing the protocol nearly $1.8 million.
Read more: Gaming tokens take hit from Bitcoin’s dip to $40k