Protocol Loses $1.7M in Private Key Leak
Grand Base (GB), a tokenization protocol operating on Coinbase’s layer-2 blockchain, has experienced a loss of $1.7 million due to a compromised private key. An exploit occurred on April 15, leading the protocol’s admin to advise community members to avoid the contract as it is no longer safe. According to PeckShield, a blockchain analytics firm, the private key leak resulted in the theft of $1.7 million in tokens from the liquidity pools, which were then swapped for Ether and sent off-chain. The incident also caused the native token of the Grand Base protocol to lose 99% of its value within 24 hours. The admin emphasized that the token contract is no longer safe, and updates on the situation will be provided.
CertiK, another blockchain analytics firm, conducted an analysis that revealed the hacker’s control over the Grand Base deployer contracts. The hacker then minted an excessive number of GB tokens without authorization and subsequently withdrew them. A posting from Grand Base staff suggested that they have tracked the hacker’s wallets and are awaiting their next move, while also discussing the potential of freezing funds with certain exchanges (CEXs).
The news of the hack left users disappointed, with one user advising others not to deposit any more money into Grand Base in order to avoid further losses. Another user alleged that there were hidden loopholes in the contract, pointing out that the total balance showed no changes, which could possibly be intentional by the developers.
Prior to the attack, Grand Base had a maximum token cap of 50 million GB tokens. The tokenization protocol, which allowed users to deposit collateral to mint ERC-20 tokens representing real-world assets and earn rewards through liquidity provision for the tokenized assets, was launched less than five months ago.
9 thoughts on “Protocol Loses $1.7M in Private Key Leak”
Leave a Reply
You must be logged in to post a comment.
It’s great to see the Grand Base community supporting each other during this difficult time. Together, we can overcome!
I feel betrayed by Grand Base. They had one job – to keep our funds secure. Now we’re left with nothing but regrets and shattered trust.
Tokenizing real-world assets is such a promising concept. I hope Grand Base can bounce back stronger from this setback.
Such a sad turn of events for Grand Base. Let’s hope they can recover and come back stronger!
The drop in the token’s value is a harsh reality, but I hope it serves as a lesson for the entire blockchain industry.
The hacker minted an excessive number of tokens without authorization? That’s a serious breach of trust!
It’s inspiring to see the Grand Base staff actively tracking the hacker’s movements. Hopefully, they can take decisive action soon!
Is there any hope of recovering our funds? 🙏 It’s devastating to lose everything and see the value of the native token drop dramatically. 💔
Everyone, be cautious! Do not deposit any more money into Grand Base until they have resolved their security issues.