A recent hacking of the crypto gaming platform PlayDapp has led to the loss of millions worth of the PLA token, the main currency used on the platform.
According to blockchain analytics firm Elliptic, an unauthorized wallet was able to mint 200 million PLA tokens, valued at $36.5 million on February 9th, due to a compromised private key.
Following the incident, PlayDapp contacted the hacker through an on-chain transaction, offering a $1 million reward for returning the stolen funds by February 13th at 3:00am ET.
If the funds were not returned, PlayDapp stated that they would issue a $1 million bounty for the hacker and cooperate with law enforcement. However, negotiations were unsuccessful as the hacker showed no intention of returning the funds.
They proceeded to mint an additional 1.59 billion PLA tokens, worth $253.9 million, and tried to launder the funds through various crypto exchanges.
Elliptic reports that the total circulating supply of PLA tokens prior to the hacks was 577 million, making it difficult for the hacker to sell the newly-minted 1.8 billion tokens at their previous market value.
