The gaming platform PlayDapp recently fell victim to a significant cryptocurrency hack, where cybercriminals absconded with a vast sum of altcoins. After a deep dive into the situation, blockchain analysis firm Elliptic reported that an unauthorized entity illegally generated and stole 1.79 billion PLA tokens, which equates to an alarming $290 million. The initial breach, involving the creation of 200 million PLA tokens valued at $36.5 million, occurred on February 9th due to a suspected private key compromise.
Failed Negotiations and Increased Losses
PlayDapp made an immediate response by reaching out to the thief, offering a $1 million bounty in exchange for the return of the stolen assets before 3 AM on February 13th. The overture, however, fell flat as the hacker demonstrated no interest in the offer, leaving the platform’s users to bear their losses.
Rising Theft and Laundering Activities
Rejecting the deal, the hacker escalated the situation on February 12th by minting an additional 1.59 billion PLA tokens, worth approximately $253.9 million. These newly created tokens were then funneled through various cryptocurrency exchanges in an attempt to launder the illegal proceeds. According to Elliptic, the hacker’s ability to liquidate such a vast number of tokens at their pre-theft market value could be challenging due to the significant increase in the circulating supply caused by the hack.
In response to the breach, PlayDapp took to social media to announce the suspension of the PLA smart contract, urging users to refrain from transactions and assuring them that all efforts were being made to secure their assets. The platform is actively collaborating with exchanges, blockchain analysts, and law enforcement to monitor and address the incident, considering various remedies such as airdrops for the affected parties. The aftermath of the heist has seen the value of PLA plummet by 20%, with the token’s price dropping to just $0.15.