Business News Report
January 23, 2024

Animoca-Backed Gamee Faces 600 Million GMEE Token Theft Due to Exploited Token Contracts

Animoca-Backed Gamee Faces 600 Million Token Theft Due to Exploited Token Contracts

Blockchain gaming project supported by Animoca Brands, Gamee confirmed that its Gamee token (GMEE) contracts on Polygon experienced “unauthorized access” on Tuesday, leading to the theft of 600 million tokens.

Gamee stated that its Polygon GMEE deployer address was compromised through unauthorized GitLab access earlier today, resulting in a theft of tokens. The stolen tokens were subsequently converted to Ethereum native token ETH and Polygon’s native token MATIC. The total value of the impacted tokens was $15 million at the time of the incident.

“Over the next few hours, the exploiter traded the compromised tokens through various DEXs, affecting the GMEE token price on multiple exchanges,” said Gamee in the social media X publication.  

The project emphasized that all unauthorized access to the token contracts has been secured. The GMEE token price has fallen by 64% in the last 24 hours to below $0.01, as per CoinGecko data.

“The exploit affected proprietary team token reserves only, and no community-owned assets have been compromised. Gamee does not custody or manage any community-owned assets,” said Gamee. 

Currently, the platform has temporarily suspended liquidity provision on all DEXs. It has informed all centralized exchanges with GMEE markets to temporarily disable deposits and freeze tokens associated with the attack. Gamee is conducting a comprehensive security review of all existing procedures and contracts and collaborates with law enforcement to initiate legal proceedings.

The project team added that it will further identify users affected by the incident and elaborate a plan to provide support to its loyal community during this challenging period. 

The Dangerous Game of Security Breach

Gamee is a play-to-earn gaming platform where users engage in game missions, participate in tournaments and earn prizes. The platform, with over 30 million users, aims to bring the value of blockchain to the mainstream gaming audience, acknowledging and rewarding gaming skill, effort and loyalty. Acquired by Animoca Brands in 2021, Gamee has accessed global brand IPs, collaborating with entities like Manchester City FC, Atari and Bratz over the years.

Exploits, unauthorized access and token thefts have become recurrent challenges for blockchain projects, and the gaming realm is not exempt from these security issues.

Last year, the Sandbox, a blockchain-based metaverse company, faced a security breach when an unauthorized third party gained access to an employee’s computer. The intruder then sent a fraudulent email to the platform’s users, which invited users to access the game on the platform and included links capable of installing malware on a user’s computer upon clicking.

The installed malware granted the third party control over the affected user’s computer, providing access to their personal information.

Despite the unauthorized access and token theft, Gamee is committed to ensuring the support of its community and securing its token contracts during the challenging period.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

More articles
Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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