PlayDapp Hit by $290 Million Crypto Hack
PlayDapp, a crypto gaming platform that allows users to play and trade NFTs, has been hacked by an unknown attacker who minted and stole PLA tokens worth $290 million at the time of the thefts.
The first breach occurred on February 9, 2024, when the hacker created 200 million PLA tokens, the native currency of PlayDapp, from an unauthorized wallet. The tokens were then worth $36.5 million, according to Elliptic, a crypto analytics firm. The hack is believed to have been caused by a private key compromise, which gave the hacker access to the smart contract that controls the PLA token supply.
In an attempt to recover the stolen funds, PlayDapp offered a $1 million “white hat reward” to the hacker through an on-chain message, asking them to return the tokens by February 13, 2024. However, the hacker did not comply and instead minted another 1.59 billion PLA tokens on February 12, 2024, worth $253.9 million at the time of the second breach.
The hacker has already started to launder the stolen tokens by sending them to various crypto exchanges and other accounts, according to Elliptic. The firm has labelled the wallets associated with the hacker in its tools, enabling crypto service providers to identify and block the proceeds of the hack.
The massive hack has severely impacted the PlayDapp platform and its users, as well as the PLA token price and market. Before the breaches, the total circulating supply of PLA tokens was 577 million, meaning that the hacker has inflated the supply by more than three times. This has resulted in a sharp drop in the PLA token value, which has fallen by over 90% since the first breach, according to CoinMarketCap.
The PlayDapp hack is one of the largest crypto hacks in history, surpassing the infamous FTX hack of 2022, which led to the loss of over $1 billion worth of crypto assets. The hack also highlights the security risks and challenges faced by the emerging crypto gaming industry, which has seen a surge in popularity and innovation in recent years.
PlayDapp has not yet issued an official statement or response to the hack, nor has it disclosed how it plans to compensate its users or restore its platform. The hacker remains at large and may attempt to cash out more of the stolen tokens in the future.
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