Blockchain Gaming Platform PlayDapp Loses $290 Million in Security Breach
Blockchain analytics firm Elliptic has revealed that the popular crypto gaming platform PlayDapp (PLA) recently fell victim to a significant security breach, resulting in the loss of approximately $290 million worth of crypto assets. The breach, which occurred on February 9th, involved the leaking of a private key.
During the initial breach, a wallet that was not authorized minted a staggering 200 million PLA tokens. At the time, these tokens were valued at $36.5 million. In an effort to recover the stolen assets, PlayDapp issued a white hat reward of $1 million and urged the hackers to return the assets by February 13th.
To communicate directly with the hackers, PlayDapp sent an on-chain message, promising to release the bounty if the hackers did not respond by the deadline. However, on February 12th, the hackers minted an additional 1.59 billion PLA tokens, raising the total value of stolen assets to $253.9 million.
According to Elliptic, the hackers have already started laundering the tokens by transferring them to various exchanges and accounts. Unfortunately for the hackers, the market value of the newly minted tokens has significantly diminished due to the substantial increase in the circulating supply of PLA tokens. Prior to the breaches, there were approximately 577 million PLA tokens in circulation. This number rose to around 1.8 billion after the breaches, making it difficult for the hackers to sell the tokens at their previous market value.
PlayDapp has informed the authorities and blockchain intelligence firms about the breach, making it difficult for the stolen funds to be moved or exchanged. Elliptic has marked the wallets associated with the hackers in their tools, enabling exchanges and other service providers to identify any transactions involving the stolen funds.
Analyst comment
This news is negative for the market. The theft of $290 million in crypto assets from PlayDapp will likely create uncertainty and negative sentiment. The market value of the newly minted tokens has significantly diminished, making it challenging for the hackers to sell them at their previous market value. The involvement of law enforcement and blockchain intelligence firms will likely limit the movement and exchange of the stolen funds.
