Gamee, a blockchain gaming project, was hit with an exploit on Tuesday, resulting in the hackers gaining “unauthorized access” to the Gamee token (GMEE) contracts on Polygon.
Summary:
A few hours ago, there was unauthorized access to the $GMEE token contracts on Polygon leading to the theft of funds. Gamee team has secured all unauthorized access to the token contracts. The exploit affected proprietary team token reserves only, and no community-owned…— GMEE Token (@GAMEEToken) January 23, 2024
The project, backed by Animoca Brands, lost 600 million tokens as a result.
According to an announcement by Gamee on X, the Polygon GMEE deployer address was compromised via unauthorized GitLab access.
This led to a large theft of tokens, which were subsequently converted to ETH and MATIC. The impacted tokens were valued at approximately $15 million at the time of the incident.
The exploit affected proprietary team token reserves only, and no community-owned assets were compromised.
Gamee does not custody or manage any community-owned assets.
See Also: Magic Eden Launches New Program To Reward Traders With NFT Token
According to Coinstats data, the price of the GMEE token plummeted by over 78% since the incident to $0.0053. However, the token value has recovered slightly to trade at $0.019.
Gamee has assured its community that it is working to identify impacted users and explore a plan to support them during this challenging period.
The company is also taking steps to enhance its security measures to prevent similar incidents from occurring in the future.
The Gamee token has seen an exceptional rally in November last year, increasing its value by over 16X amidst the blockchain gaming hype and wider crypto market exuberance.
