Grand Base, a DeFi protocol, has fallen victim to a damaging breach, losing over $2 million. Certik uncovered the malicious activity, which involved a hacked deployer's wallet and unauthorized token minting. The attacker exchanged and bridged the new tokens into Ethereum, causing a swift sell-off and a 99% drop in GB token value. MEXC crypto exchange is collaborating to suspend trading, while security experts emphasize the need for stricter security measures to prevent future losses.
Grand Base DeFi Protocol Suffers Major Breach, Resulting in $2 Million Loss
Grand Base, a decentralized finance (DeFi) protocol, has fallen victim to a significant breach, leading to the loss of over $2 million in assets.
An investigation conducted by blockchain security firm Certik revealed that a malicious actor gained unauthorized access to the Grand Base deployer's wallet, enabling them to mint counterfeit tokens. These tokens were subsequently traded and transferred to the Ethereum ecosystem, exacerbating the protocol's losses. The breach resulted in a series of unauthorized transactions, culminating in the sale of assets worth approximately $2 million.
"The incident has caused a drastic sell-off of assets, resulting in a significant decline in the GB token's value," stated a Certik Alert tweet on April 15, 2024. "Over 525 ETH (approximately $1.7 million) was bridged to Ethereum wallets."
The sharp decline in the token's value has destabilized the market, with experts expressing concern over the implications for the DeFi sector. Collaborative efforts are underway with the MEXC crypto exchange to suspend trading activities associated with the compromised tokens.
Cyvers, a security firm specializing in AI Web3, has highlighted the severity of the breach, emphasizing the attacker's ability to mint new tokens as a major factor in the substantial financial losses. "This incident underscores the critical need for enhanced security protocols and vigilant monitoring to mitigate such devastating losses in the future," said a Cyvers spokesperson.
Grand BaseFi, the project behind the protocol, was launched in early 2024 as a decentralized marketplace for spot synthetic real-world assets (RWAs). Despite gaining significant traction and boasting millions of dollars in daily trading volumes for its GB token, the project has faced scrutiny due to a flaw in its smart contract. This flaw allowed developers to mint new tokens without any restrictions, as identified by CoinGecko.
The Grand Base breach serves as a stark reminder of the ongoing security challenges facing the DeFi ecosystem. As the sector continues to grow rapidly, experts emphasize the importance of robust security measures and vigilant oversight to protect user funds and maintain market stability.
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