In a recent security update, Gamee, a blockchain gaming project supported by Animoca Brands, has officially confirmed a substantial breach in its $GMEE token contracts on the Polygon network. The breach involved unauthorized access to the deployer address, leading to the theft of 600 million tokens, valued at $15 million during the incident and causing a 64% decline in $GMEE token price.

“Over the next few hours, the exploiter exchanged the compromised tokens via various DEXs, impacting the GMEE token price across various exchanges. The exploit affected proprietary team token reserves only, and no community-owned assets have been compromised. Gamee does not custody or manage any community-owned assets.”

The breach, identified around 6:31 p.m. UTC on Tuesday, was attributed to compromised GitLab credentials earlier in the day. Gamee promptly secured all unauthorized access to the token contracts. The stolen tokens were swiftly converted to $ETH and $MATIC, impacting the $GMEE token price across various decentralized exchanges (DEXs). As a result, the $GMEE token witnessed a significant drop below $0.01, as reported by CoinGecko.

Gamee reassured users that the exploit exclusively impacted proprietary team token reserves and emphasized that no community-owned assets were compromised. The project, highlighting its non-custodial role in managing community-owned assets, distanced itself from any potential community losses.

In response to the incident, Gamee is actively identifying affected users and exploring a plan to support its loyal community during this challenging period. The project remains focused on fortifying its security measures to prevent future breaches and addressing the aftermath of the exploit.

In the context of web3 gaming, these findings underscore the unique challenges and vulnerabilities still faced by blockchain gaming projects. As the industry navigates the integration of blockchain technology, securing token contracts becomes paramount. Gamee's incident serves as a crucial reminder for web3 gaming platforms to continually enhance security measures to safeguard user assets in an evolving digital landscape.