Date: February 14, 2024
Immediate Suspension in the Wake of Security Compromise
Coinbase has taken swift action to suspend the trading of PlayDapp (PLA) tokens as a repercussion of a significant exploit within its smart contract system. This suspension affects a wide range of Coinbase services, including the main website, Coinbase Prime, Advanced Trade, and the Coinbase Exchange.
Detecting the Breach: PlayDapp’s Quick Response
PlayDapp, a prominent Web3 gaming platform, paused its smart contract operations due to alarming security concerns. The breach was detected on February 9, leading to the unauthorized minting of 200 million PLA tokens, which had an estimated value of $31 million.
Blockchain Security Analysis
Blockchain security specialists from PeckShield and Cyvers Alerts have shed light on the breach, identifying that the deployer’s address was compromised. This allowed the hacker to add a new minter address, thereby enabling the fraudulent minting of tokens.
Negotiations with the Hacker
PlayDapp has approached the hacker with a proposal, offering a $1 million reward for the return of the stolen tokens. This offer also comes with the possibility of legal repercussions, with PlayDapp not hesitating to involve the FBI should the assets not be recovered.
Customer Service Challenges
The situation was further aggravated by PlayDapp’s customer service experiencing outages, stretching from February 9 to 12, which posed additional hurdles in managing the crisis.
Market Impact and PlayDapp’s Countermeasures
Following an additional unauthorized minting incident by the hacker, involving 1.59 billion PLA tokens, PlayDapp announced the temporary suspension of its smart contract. The PLA token’s value subsequently dropped, reflecting the severity of the hack.
Background and Coinbase’s Proactive Stance
Before this incident, PlayDapp had been in the news for its innovative gaming solutions. However, this is not the first instance of Coinbase suspending tokens; the platform has a history of proactive measures to ensure a secure trading environment, having previously suspended several other tokens as a part of its routine assessment.
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