The play-and-own mobile gaming platform GAMEE suffered a security breach in its GMEE token contracts on the Polygon network.
The exploit resulted in the theft of 600 million GMEE tokens, worth around $14 million. As the crypto community awaits further developments, GAMEE has provided preliminary insights into the incident and outlined its plans for dealing with the fallout.
On January 22, the X (formerly Twitter) account of GAMEE Token advised users to avoid interacting with the GMEE token while the team investigated a security compromise. Users had already reported a sudden price drop, raising suspicions of a possible exploit.
GAMEE’s preliminary investigation revealed that the GMEE token contracts on Polygon were compromised due to unauthorized access to GitLab.
During the exploit, 600 million GMEE tokens, valued at around $15 million, were transferred without authorization.
The compromised tokens were quickly converted to ETH and MATIC, which were then traded on various decentralized exchanges (DEXs), having a significant impact on the GMEE token price.
To resolve the situation, GAMEE transferred ownership of the token contract and associated contracts to a new, secure address.
The team clarified that only proprietary team token reserves were impacted, while community-owned assets remained unaffected because GAMEE does not manage or custody such assets.
GAMEE outlined its next steps, which include identifying impacted users and determining the best way to support the affected community members.