Grand Base, a platform that allows for the tokenization of assets on Coinbase’s layer-2 blockchain, has revealed that it suffered a loss of $1.7 million as a result of a compromised private key. This incident led to a significant financial loss and a 99% drop in the value of its token in just one day.
The breach occurred in the early hours of April 15 and was announced by the Grand Base team on their official Telegram channel. The platform’s administrator issued a statement advising users to avoid interacting with the compromised contract and to withdraw their funds from the affected platform after the security vulnerability was discovered.
Blockchain analysis firm PeckShield was the first to detect the problem, revealing that the private key had been cracked, allowing the hacker to gain access to Grand Base’s liquidity pools and conduct trades. Within 30 minutes, the attackers were able to steal approximately $1.7 million worth of tokens and convert them into 527 Ethereum (ETH), which were then transferred to an unknown wallet.
As a result of the attack, the value of Grand Base’s native coin experienced significant fluctuations, almost destroying its market value. This incident reflects a lack of investor confidence in the platform. CertiK, an analysis company, further revealed the extent of the attackers’ actions, highlighting that they were able to manipulate the deployer contracts used by Grand Base. By exploiting a loophole, they created and distributed a large number of GB tokens without authorization, exacerbating the situation.
In response to the attack, the Grand Base team has been actively tracking the hacker’s wallets and is working with centralized exchanges to freeze any funds that have been moved, in order to prevent further spread. This incident serves as a reminder of the potential weaknesses in digital asset protocols and emphasizes the importance of robust security measures. Investors are advised to exercise caution and ensure they have up-to-date information on the security measures and operational strength of any cryptocurrency platforms they invest in.
This attack has significantly impacted Grand Base’s reputation, considering the platform had only been operational for less than five months prior to the incident. It aimed to provide security for users who deposited their assets as collateral and offered liquidity rewards. Rebuilding trust and providing enhanced security measures will be a major challenge for the platform moving forward.
