Crypto News- In a recent revelation by blockchain analytics firm Elliptic, an exploit targeting the crypto gaming platform PlayDapp has resulted in the loss of millions worth of PLA tokens. The PLA token serves as the backbone for PlayDapp’s gaming platform and NFT marketplace.
According to Elliptic’s report released on Tuesday, an unauthorized wallet, likely compromised due to a private key breach, initiated the minting of 200 million PLA tokens valued at $36.5 million on February 9th.
Crypto Gaming Giant PlayDapp Suffers 290 Million Dollars Loss in Token Exploits, Elliptic Reveals
Following this breach, PlayDapp attempted negotiation with the exploiter, reaching out through an on-chain transaction and offering a $1 million white hat reward for the return of the stolen funds by February 13th, 3:00 a.m. ET. However, the hacker showed no willingness to cooperate.
Instead, the hacker proceeded to mint an additional 1.59 billion PLA tokens, valued at a staggering $253.9 million, on February 12th, subsequently laundering the funds through various crypto exchanges.
PlayDapp’s PLA Token Exploit: A Closer Look at the Multi-Million Dollar Loss and Ongoing Response Efforts
In response to the breaches, PlayDapp announced the pause of its PLA smart contract on February 13th via the social media platform X. The pause was initiated to conduct a snapshot for migration, aimed at protecting holders’ assets.
PlayDapp assured the community that it is actively collaborating with crypto exchanges, blockchain forensic firms, and law enforcement agencies to address the situation. Additionally, the company is exploring migration solutions such as an airdrop to mitigate the impact of the exploit.
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