Playdapp Struggles with Dual Exploits, Resulting in Token Losses of $290 Million

PlayDapp, the blockchain gaming platform, has been hit with its second cyber attack in just a week, resulting in millions of dollars in losses. On February 9th, the platform experienced its first breach, losing $31 million worth of assets. The attackers managed to steal a total of $290 million worth of PLA tokens, the native cryptocurrency used on PlayDapp’s gaming platform and NFT marketplace.

In the latest attack, which occurred on February 12th, the hacker gained access to the platform’s backend infrastructure and added their address to it. Using a compromised private key, the hacker minted 200 million PLA tokens valued at $36.5 million. They then went on to mint an additional 1.59 billion PLA tokens worth $253.9 million and laundered them through exchanges.

Despite the breach, the PlayDapp team responded swiftly. They paused the PLA smart contract and requested a transaction halt for a snapshot. They also communicated with exchanges to suspend deposits and withdrawals, freezing the hacker’s wallets. In an attempt to retrieve the stolen assets, the team contacted the hacker directly, offering a reward for their return. However, all their attempts to communicate with the hacker have been unsuccessful.

The market impact of the breach was evident, as the price of the PLA token dropped to $0.15 on February 13th, a decrease of 2.9% within 24 hours. Nevertheless, the PlayDapp team remains determined to recover the stolen tokens and has started communication with the hacker. The crypto community eagerly awaits the hacker’s response and the team’s mitigation plan.

Despite the setbacks, PlayDapp remains committed to its users and has taken steps to prevent future attacks. They have warned the hacker of potential involvement from law enforcement agencies, including the FBI, and have publicly announced a bounty and sought assistance from WEB3 security agencies.