The PlayDapp cryptocurrency gaming platform's exploit led to the loss of millions worth of PLA tokens that power the PlayDapp gaming platform and NFT marketplace, according to blockchain analytics firm Elliptic.
An unauthorized wallet, likely resulting from a private key compromise, minted 200 million PLA tokens worth $36.5 million at the time on February 9, Elliptic noted in a report released Tuesday.
Shortly after this incident, PlayDapp sent a message to the exploiter through an on-chain transaction asking the hacker to connectReturn the stolen funds by 3:00 AM ET on February 13 for a $1 million white hat reward. If not, PlayDapp said it will issue a $1 million reward to find the hacker and cooperate with law enforcement.
“Attempts to negotiate with the hackers were unsuccessful as they showed no willingness to help recover the owners’ losses,” PlayDapp wrote in a statement on Tuesday.
Instead, the hacker minted an additional 1.59 billion PLA tokens worth $253.9 million on February 12 and began laundering money through cryptocurrency exchanges.
“Before the breaches, the total circulating supply of PLA tokens was 577 million, so the exploiter may have difficulty selling the newly minted 1.8 billion tokens for anything close to their market value before the breaches,” Elliptic wrote.
Smart contracts have been paused
On February 13, PlayDapp was launched books On social media platform X, the PLA smart contract has been temporarily suspended.
“We ask you to stop the transactions to conduct a snapshot of immigration,” she said. “Please understand that we are doing everything we can to protect the owners’ assets, and we will continue to keep the community informed.”
PlayDapp added that it is working with cryptocurrency exchanges, blockchain forensics firms, and law enforcement. Additionally, it tracks which tokens have been minted and exchanged and discusses migration solutions, such as airdrops.
PlayDapp's PLA token was trading for $0.15 as of 10:55 a.m. ET on February 13, down 2.9% over the past 24 hours, according to The Block's price page for PLA.
Disclaimer: The Block is an independent media outlet that provides news, research and data. As of November 2023, Foresight Ventures is the majority investor in The Block. Foresight Ventures is investing in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is a core program of Foresight Ventures. The Block continues to work independently to provide objective, influential and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
