Blockchain analytics firm Elliptic says the crypto gaming platform PlayDapp (PLA) lost $290 million worth of crypto assets as a result of security breaches this month.
Elliptic says the first breach, suspected to involve a private key leak, happened on February 9th. An unauthorized wallet minted 200 million PLA tokens worth $36.5 million at the time.
PlayDapp sought to recover the stolen funds by offering a white hat reward of $1 million in exchange for the return of the assets by February 13th. In a message sent to the hackers on-chain, PlayDapp said it would release the amount as a bounty if they failed to act on the deadline.
On February 12th, the hackers again minted an additional 1.59 billion PLA tokens, then worth $253.9 million.
Elliptic says the hackers have started laundering the tokens, sending them to exchanges and other accounts, albeit the assets are now worth less than their value at the time of the breach.
“Before the breaches, the total circulating supply of PLA tokens was 577 million, so the exploiter may find it difficult to sell the ~1.8 billion newly-minted tokens at anything close to their market value prior to the hacks.”
PlayDapp says it will be difficult to move and exchange the stolen funds because it already contacted law enforcement authorities and blockchain intelligence companies.
Elliptic says crypto firms can also identify the stolen funds.
“The wallets associated with the exploiter have already been labeled in Elliptic’s tools – allowing exchanges and other service providers to identify whether they are receiving the proceeds of this hack.”
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