Gamee, a blockchain gaming project supported by Animoca Brands, recently faced a security breach on its Gamee token (GMEE) contracts hosted on the Polygon network. The unauthorized access occurred on a Tuesday, resulting in the theft of a substantial 600 million tokens around 6:31 p.m. UTC. Gamee disclosed the incident in a detailed post, outlining that the breach involved the compromise of its Polygon GMEE deployer address due to unauthorized access to GitLab.
Gamee loses 600 million tokens in a hack attack
The exploit led to the misappropriation of tokens, totaling 600 million GMEE, which were subsequently converted into Ethereum (ETH) and Polygon’s native token, MATIC. At the time of the breach, the stolen tokens were valued at approximately $15 million. The compromised tokens were quickly exchanged by the exploiter across various decentralized exchanges (DEXs). This had a cascading effect on the GMEE token price, causing a significant 64% drop within the following 24 hours, bringing it below $0.01, according to CoinGecko data.
Gamee assured its community that all unauthorized access to the token contracts had been secured, emphasizing that the exploit specifically impacted proprietary team token reserves. Importantly, no assets owned by the community were compromised, as Gamee clarified that they do not hold or manage any community-owned assets. Despite the unfortunate incident, Gamee expressed its commitment to addressing the aftermath. The project pledged to identify affected users and develop a plan to support its loyal community during this challenging period.
Gamee’s response and community support plans
Gamee aims to mitigate the impact of the breach on its community members and take steps to restore confidence in its platform. As the situation unfolded, Gamee noted that the unauthorized access occurred through GitLab, a web-based Git repository manager. GitLab is commonly used for version control, facilitating collaboration among developers. The breach of the Polygon GMEE deployer address via unauthorized GitLab access underscores the importance of robust security measures, especially in blockchain projects where assets and tokens are at risk.
The swift conversion of the stolen GMEE tokens to ETH and MATIC through various DEXs highlights the challenges associated with tracking and recovering misappropriated funds in the decentralized and pseudonymous environment of blockchain networks. The exploit’s impact on the GMEE token price across different exchanges reflects the interconnected nature of the cryptocurrency market and how security incidents can reverberate through various platforms. Gamee’s commitment to securing its community-owned assets and addressing the concerns of affected users is a positive step in maintaining trust within the gaming and blockchain community.
By taking responsibility for the incident and actively working to support its users, Gamee aims to minimize the potential long-term consequences of the security breach. The plummet in GMEE token price serves as a reminder of the vulnerability of cryptocurrency markets to external events. Security breaches and exploits can have immediate and profound effects on token values, necessitating rapid response and communication from the affected projects to reassure users and stakeholders. The unauthorized access to Gamee’s GMEE token contracts on Polygon serves as a cautionary tale for blockchain projects, emphasizing the critical importance of robust security measures and proactive communication in the face of security incidents.