PlayDapp suffers $300 million exploit, hacker minted 1.59B tokens

abdelaziz Fathi

The PlayDapp gaming platform and its associated NFT marketplace have been hit by a security exploit, leading to the unauthorized creation and theft of PLA tokens valued at millions of dollars.

Blockchain analysis firm Elliptic revealed that an exploit on February 9 involved the minting of 200 million PLA tokens, worth nearly $36.5 million at the time, by an unauthorized wallet. This incident is believed to stem from a compromise of a private key.

Following the initial exploit, PlayDapp reached out to the exploiter, offering a $1 million reward for returning the stolen funds. However, negotiations failed, and the hacker proceeded yesterday to mint an additional 1.59 billion PLA tokens. Valued at around $290 million, based on their market value at the time of the thefts, the hacker started laundering these tokens through various cryptocurrency exchanges.

“The wallets associated with the exploiter have already been labelled in Elliptic’s tools – allowing exchanges and other service providers to identify whether they are receiving the proceeds of this hack,” said Elliptic.

Given the original circulating supply of PLA tokens was 577 million, Elliptic notes that the exploiter may struggle to sell the newly minted 1.8 billion tokens at their pre-hack market value. In response to the breach, PlayDapp announced on X that the PLA smart contract had been paused to prepare for a potential token migration and snapshot to protect holders’ assets.

PlayDapp said it’s actively working with crypto exchanges, blockchain forensic firms, and law enforcement to address the situation. The platform is tracking the minted and swapped tokens and exploring possible solutions, including an airdrop, to mitigate the impact on its community. As of February 13, the PLA token’s value had dropped by 2.9% over the previous 24 hours, trading at $0.15.


Elliptic’s product helps banks to assess hundreds of crypto exchanges operating worldwide. Called ‘Elliptic Discovery,’ this solution is purpose-built for banks to enable them to identify crypto exchanges that are complying with strict regulatory standards. Discovery boasts a database of hundreds of exchanges, collected since 2013, including their owners, jurisdiction, regulatory status, and compliance policies.

  • Read this next

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    Digital Assets

    Coin Metrics integrates market data from Cboe Digital

    “We are pleased to work with Coin Metrics and believe that having quality and timely data, and systems to analyze that data, will help crypto markets mature as well as evolve to become a core component of a diversified investment portfolio. We are focused on providing access and solutions to the spot and derivatives crypto market in a way which mirrors an investor’s experience with traditional markets.”

    Fintech

    AU10TIX launches KYB solution to address regulatory requirements

    “Our customers have been requesting a comprehensive KYB solution, because money laundering and fraud have become far too prevalent in the corporate world. Our unified KYB/KYC solution is essential for identifying bad actors and maintaining a safe business environment in 2024.”

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

    Fintech

    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”

    <