Coinbase-based Tokenization Protocol Grand Base Hit by $1.7 Million Security Breach
Summary:
Grand Base (GB), a real-world asset tokenization protocol functioning on Coinbase's layer-2 blockchain, suffered a security breach leading to a loss of $1.7 million. The breach resulted from a private key leak, causing the protocol's native token to lose 99% of its value within 24 hours. The hackers allegedly accessed Grand Base's deployer contracts, minted GB tokens without authorization, and then withdrew them. In response to the incident, Grand Base officials have traced the hacker's wallets and are negotiating the potential freezing of transferred funds.
The tokenization protocol for real-world assets known as Grand Base (GB), which is built on Coinbase's indigenous layer-2 blockchain, has incurred a financial damage of $1.7 million through a private key security breach. A protocol administrator stated in a Telegram chat group that their contracts were exploited on April 15th, at exactly 03:01:27 AM +UTC. Consequently, all users were firmly advised to avoid the compromised contract due to security risks.
Blockchain analytics company, PeckShield, reported that the breach of private key resulted in the pilfering of tokens worth $1.7 million from the liquidity pools. These stolen tokens were later converted to Ether (ETH) on the blockchain and transferred to an outer account. In the wake of this incident, the value of the protocol's native token fell by 99% within the past 24 hours.
The protocol's Telegram group admin underlined that, due to security reasons, users should no longer transact or engage with this token contract, promising to promptly share the subsequent plan of action. According to an additional probe by blockchain analytics firm CertiK, the rogue party gained access to Grand Base's deployer contracts, illegally minted a surplus of GB tokens, and then withdrew them.
Following the breach, Grand Base officials announced that they have successfully traced all the cyber thief's wallets and are anticipating its subsequent move. The officials added, "Negotiations are underway with CEXs for the halting of any funds that the hacker might transfer."
The news of this recent cyber attack has significantly upset protocol users. One user expressed condolences for everyone affected and advised against investing any more money in the compromised protocol. Another user claimed that, there are overlooked vulnerabilities in the contract that are to blame for its security lapse. The user pointed out that the total balance hasn’t changed in spite of the breach, a fact they argued indicates hidden vulnerabilities. Before the cyber raid, Grand Base maintained an upper limit of 50 million GB tokens.
Launched under five months ago, the Grand Base tokenization protocol allowed for the collateral-based minting of real-world assets into ERC-20 tokens. Moreover, the protocol facilitated liquidity for the tokenized assets to earn profits.
Published At
4/15/2024 6:17:59 PM
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