On Monday, the blockchain gaming project GAMEE experienced a token hack, resulting in the loss of 600 million GMEE tokens valued at approximately $15.3 million.
As disclosed in a post on Tuesday, the team stated that “unauthorized access” to the GMEE token contracts on the Polygon network led to the funds’ compromise. Importantly, the breach impacted the proprietary team token reserves exclusively, with no exploitation of community-owned assets.
The team suspects that the hack occurred on Monday at 6:31 pm UTC when the Polygon GMEE deployer address was compromised through unauthorized GitLab access. The stolen tokens were then converted to both ether and MATIC.
Following the exploit, the attacker engaged in trading the compromised tokens on various decentralized exchanges, influencing their prices across these platforms.
In response, the team secured the token contract ownerships linked to the breached deployer address, transferring them to a new address for enhanced security measures.
GAMEE has temporarily suspended liquidity provision on decentralized exchanges and has notified centralized exchanges with GMEE markets to cease deposits and freeze tokens associated with the hack.
The team plans to release a comprehensive update within 48 hours, and users are advised to refrain from interacting with GMEE until further notice, according to an administrator on GAMEE’s Discord channel.
GAMEE, backed by Animoca Brands, operates on the blockchain to create and deploy gaming tokens using smart contracts on platforms like Ethereum, Binance Smart Chain, or Avalanche. This approach aims to facilitate the seamless movement and storage of tokens between players and game developers, fostering a more equitable and transparent relationship.
Despite the security concerns raised by the hack, the blockchain gaming market continues to expand. Recent incidents, such as the Ronin Network breach in March 2022 and the Wormhole bridge exploit in February 2022, have highlighted security challenges in the blockchain gaming sector. Nevertheless, industry projections anticipate the blockchain gaming market to potentially exceed a value of $600 billion by 2030.