Grand Base, a protocol on Coinbase’s blockchain, lost $1.7 million after a private key was compromised.
An admin in the Telegram chat warned users to steer clear of the contract after an exploit on April 15th.
Grand Base Loses $1.7 Million in Hack, Admins Urge Caution
In addition, PeckShield, a blockchain analytics firm, confirmed the theft of $1.7 million in tokens from liquidity pools. According to on-chain data, the criminal swapped the tokens for Ether and sent them elsewhere. Interestingly, the Grand Base protocol’s token plummeted by 99% in value within 24 hours.
The protocol’s admin later stressed that the contract was unsafe and advised against any interaction with it. The admin warned, “This token contract is NOT safe anymore, and you should not swap or interact with it, stay safe. We will update you ASAP on the next step.”
#PeckShieldAlert Private Key leak? @grandbase_fi
The stolen token has been swapped for ~527 $ETH (~$1.7m) & bridged them to #Ethereum pic.twitter.com/DQYFEECrNN— PeckShieldAlert (@PeckShieldAlert) April 15, 2024
CertiK, another analytics firm, found that the hacker accessed Grand Base’s deployer contracts and minted unauthorized GB tokens. Grand Base staff stated they’ve tracked the hacker’s wallets and are working with exchanges to freeze any moved funds.
Grand Base launched less than five months ago, allowing users to mint real-world assets into ERC-20 tokens. There have been several theories about what could have gone wrong within the community. Users in the chat urged others to abandon the project to avoid further losses. Some users suspect hidden loopholes in the contract, questioning the developer’s intentions.
An important update:
On April 15 at 03:01:27 AM +UTC, an exploit happened.
For this specific reason, we urge all our community members to stay away from this contract as it is not safe anymore.
As everyone saw, we have been exploited and the LP was drained. We are working…
— Grand Base (@grandbase_fi) April 15, 2024
A Growing Crackdown on Crypto Crimes
These concerns come amid a growing awareness of crypto crimes. Law enforcement agents are increasing their capacity to tackle crypto thefts. Prosecutors are also charging crypto executives and individuals linked with crimes.
For example, Shakeeb Ahmed, a security engineer, got three years in prison and three years of supervised release for stealing $12 million from two exchanges on Solana. Authorities arrested Ahmed last year for wire fraud and money laundering. In addition, Ahmed was accused of stealing $9 million from a DEX called Crema Finance.
$4 billion was stolen by scammers in crypto in 2023.
Almost everyone has been drained at least once.
Not yet you? You could be next…
Here's a Mega-Thread on how to protect yourself from all types of scams in crypto
pic.twitter.com/l1dYCGaPRi
— 𝗰𝘆𝗰𝗹𝗼𝗽 (@nobrainflip) April 16, 2024
U.S. Attorney Damian Williams celebrated Ahmed’s guilty plea as a significant milestone, calling it “the first-ever conviction for the hack of a smart contract.”
He reassured the public, saying, “No matter how novel or sophisticated the hack, this office and our law enforcement partners are committed to following the money and bringing hackers to justice.”
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Grand Base Suffers a Heavy Price Crash Following a Hack appeared first on Altcoin Buzz.