Video game company Gamee was the victim of a cyber-attack this week, resulting in the theft of 600 million digital tokens. The stolen tokens used in Gamee’s blockchain-based games were worth an estimated $15 million at the time of the incident.
The attack occurred Tuesday evening when an unauthorized person accessed Gamee’s systems on the Polygon blockchain network. They stole the large batch of tokens, GMEE, from Gamee’s reserves. The tokens were not ones owned by Gamee’s gaming community members.
After stealing the tokens, the attacker quickly converted them into other cryptocurrencies – Ethereum (ETH) and Polygon’s MATIC token in a likely attempt to cover their tracks. This flooded the market, causing the price of GMEE to plummet 64% within 24 hours. It trades for less than 1% per token across exchanges, according to the CoinMarketCap data.
Gamee said while the cyber attack impacted its token reserves, no tokens or assets owned by its community members were stolen or compromised. The company is still investigating the extent of the breach and how the perpetrator gained access.
This incident serves as a reminder that while blockchain technology offers security benefits, potential vulnerabilities still exist – whether in the code, on exchanges, or from exposed credentials. Game is working to identify affected users and plans to support its loyal community during this difficult situation.
Also Read: Sophisticated Scam Operation Swindles $32 Million from Crypto Investors
