Polygon Contract Vulnerability Leads to $15M Extraction – Uncovering the Specifics

Polygon Contract Vulnerability Leads to $15M Extraction – Uncovering the Specifics

GAMEE Token Exploit on Polygon

The play-and-own mobile gaming platform GAMEE recently experienced a security exploit in its GMEE token contracts on Polygon. The incident resulted in the theft of 600 million GMEE tokens, raising concerns within the crypto community.

Confirmation of $15M Exploit

On January 22, GAMEE Token’s official X (formerly Twitter) account urged users to avoid interactions with the digital asset while their team investigated the security compromise related to GMEE tokens.

The GMEE token, an ERC-20 utility token, serves as the currency of access, action, and governance within the GAMEE ecosystem.

Incident Details

Before the official announcement, crypto users noticed a sudden price crash and related transactions, sparking concerns about a potential exploit. On January 23, GAMEE’s team explained that the GMEE token contracts on Polygon were compromised through unauthorized GitLab access.

This breach resulted in the theft of 600 million GMEE tokens, valued at approximately $15.28 million at the time. The compromised tokens were swiftly converted to ETH and MATIC and exchanged on various decentralized exchanges (DEXs), causing a significant impact on the GMEE token price.

The GAMEE team secured the token contract ownership and associated contracts by transferring ownership to a new secure address after identifying the compromise of the Polygon GMEE deployer address. They emphasized that only proprietary team token reserves were affected, and community-owned assets remained untouched.

Next Steps and Impact

GAMEE outlined the next steps, including an impacted user identification process to assess support for the affected community segment. Real-time updates on investigation details will be provided to maintain trust and transparency.

Users were cautioned to exercise caution due to market volatility and potential liquidity impacts resulting from central exchange (CEX) measures.

GMEE’s Price Movement

Before the exploit, GMEE traded at $0.02554112, as per CoinGecko’s data. The price had ranged from $0.027 to $0.026 over the weekend. Post-exploit, the price plummeted to $0.01155577, hitting a low of $0.00897251.

Some saw the price crash as an opportunity, buying the dip and encouraging others to do the same. At the time of writing, GMEE trades at $0.016999, marking a 31.5% decline in the last 24 hours.

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