GMEE Token Confirms $15M Exploit on Polygon Contracts

The GMEE token has lost nearly half of its value following a $15 million exploit on its Polygon contracts.

A girl with a blanket around her sits on an edge looking at Polygon logo floating around. 
  • GMEE token has been exploited.
  • The GAMEE team confirmed the exploit and theft of funds.
  • The team is “working with law enforcement” to initiate a legal action.

Animoca-backed blockchain gaming project GAMEE has confirmed an attack on its GMEE token contracts on Polygon, leading to millions of dollars in losses.

On January 23, the GAMEE team issued an “urgent” alert on Twitter (X), informing users of a security incident. Terming it a precautionary measure, the team advised all users to “refrain from engaging with GMEE until further notice.”

GAMEE Confirms Theft of Funds

Hours following the alert, GAMEE issued a detailed report, confirming that the incident affected its proprietary team token reserves, leading to the theft of funds.

“Our preliminary investigations indicate that, at 22/1 6:31 pm (UTC), Polygon $GMEE deployer address may have been compromised via unauthorized GitLab access, leading to the theft of 600M $GMEE tokens and subsequent unauthorized conversions to ETH and MATIC,” the report read.

The report further stated that the attacker exchanged the stolen tokens via “various’ decentralized exchanges (DEXs), impacting the GMEE token prices. Per CoinGecko data, the token dropped from $0.02501192 to $0.00928809 within 10 minutes following the attack.

At press time, GMEE had dropped 49.4% within the last 24 hours and was trading at $0.01292.

While the report didn’t quantify the loss in fiat, the stolen tokens were worth about $15.3 million at the time of the incident.

Next Steps

GAMEE assured users that it “secured the token contract ownership” and contracts linked with the compromised deployer address by transferring ownership to a “new secure address.”

As part of its ongoing mitigation of the incident, the team noted that it temporarily halted liquidity provisions on all DEXs and collaborated with law enforcement to initiate legal proceedings against the attacker.

The project said it will continue issuing real-time updates and a detailed report “within the next 48 hours.”

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.