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DeFi Protocol Grand Base Hacked: Over $2 Million Lost


Grand Base experienced a devastating hack and a significant security breach that shocked the DeFi community.

The exploit, driven by a compromised private key, led to unauthorized transactions that have shaken investor confidence and spotlighted vulnerabilities within the DeFi ecosystems.

DeFi Hack: Over $2 Million Vanishes

Early reports from blockchain security firm Certik reveal that the breach occurred when a malicious actor accessed the Grand Base deployer’s wallet. This entity initiated transactions, leading to a dramatic sell-off of assets worth approximately $2 million.

This action caused more than 99% slippage in the project’s GB token value, severely impacting the market stability.

The attacker’s method involved minting new GB tokens directly after accessing the deployer’s wallet. These newly created tokens were then exchanged and subsequently bridged into the Ethereum ecosystem, compounding the protocol’s losses.

GB Price Performance
Grand Base (GB) Price Performance. Source: TradingView

“The compromised deployer’s wallet losing access control raises concerns, emphasizing the urgency for heightened security protocols and vigilant monitoring to safeguard against such devastating losses in the future,” analysts at Cyvers emphasized.

Further exacerbating the situation, the system recorded two significant transactions from the compromised wallets. These moved 206 and 319 ETH, respectively, to external addresses.

In response to the crisis, Grand Base announced the compromise on its Telegram channel and assured users that they were actively taking steps to address the security breach. The team highlighted the loss of control over their developer wallet as a pivotal point of the attack.

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Conclusion

In conclusion, Grand Base experienced a severe hack resulting in a significant security breach within the DeFi community. The breach was caused by a compromised private key, leading to unauthorized transactions that affected investor confidence and exposed vulnerabilities in the DeFi ecosystem. The attacker initiated transactions worth over $2 million, causing a dramatic sell-off of assets and a significant drop in the project’s token value. The compromised wallet also saw large transactions sent to external addresses, exacerbating the situation. Grand Base has taken steps to address the breach and highlighted the importance of heightened security measures to prevent such losses in the future.

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