Bitcoin and the cryptocurrency world face one of the worst incidents with attacks on platforms. In such negative situations, significant amounts of tokens can be lost. Moreover, if there is a cryptocurrency associated with the platform, this can also result in sharp declines in the value of that cryptocurrency. The latest unfortunate event occurred on PlayDapp.
A $290 Million Dollar Altcoin Hack
According to blockchain analysis firm Elliptic, two attacks on the crypto-focused gaming platform PlayDapp resulted in the theft of a total of 1.79 billion PLA tokens. Elliptic stated on Tuesday that the likely scenario involved the compromise of a private key, with an unauthorized wallet minting 200 million PLA tokens worth $36.5 million on February 9th.
Shortly after this incident, PlayDapp attempted to negotiate a deal with the hacker by sending a message through a transaction on the blockchain, offering the hacker $1 million to return the funds by 3 AM on February 13th. However, efforts to negotiate with the hacker were unsuccessful. The platform stated the following in their announcement:
“Attempts to negotiate with the hacker failed, as the hackers showed no willingness to help compensate the owners for their losses.”
Hacker Mocks the Situation
Instead of negotiating, on February 12th, the hacker made another move, minting an additional 1.59 billion PLA tokens worth $253.9 million and began laundering the funds through cryptocurrency exchanges. Following this action, Elliptic released a statement saying:
“Before the hacks, the total circulating supply of PLA tokens was 577 million. Therefore, the hacker may struggle to sell the newly minted 1.8 billion tokens at a price close to their market value before the hacks.”
Today, the crypto-focused gaming platform PlayDapp announced through social media platform X that the PLA smart contract has been suspended. The statement used the following language:
“We request a halt in transactions to take a snapshot for relocation or transition. Please understand that we are doing everything to protect the owners’ assets and will continue to keep the community updated.”
PlayDapp also emphasized that they are working with cryptocurrency exchanges, blockchain monitoring companies, and law enforcement agencies to track the minted and traded tokens and are discussing transition solutions such as airdrops. As of writing this article, the PLA price has dropped by 20%, trading at $0.15.
