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<p class="is-style-lead">Coinbase recently halted trading of the cryptocurrency PlayDapp (PLA) following a major exploit of its smart contract.&nbsp;</p>
<p>This decision impacts several of Coinbase’s platforms, including Coinbase.com, Coinbase Prime, Advanced Trade, and Coinbase Exchange. This move was a direct response to actions taken by the Web3 gaming platform PlayDapp, which paused its <a href="https://crypto.news/introduction-to-smart-contracts-do-they-need-to-be-legally-binding/" rel="noopener noreferrer nofollow">smart contract’s</a> functionality due to security concerns.</p>
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   <p lang="en" dir="ltr">In light of recent updates involving the use of "Pause" functionality on the PlayDapp (PLA) smart contract, we have suspended trading and transfers of PLA across <a href="https://t.co/CD3RBjtMAO" target="_blank" rel="noopener noreferrer nofollow">https://t.co/CD3RBjtMAO</a>, Coinbase Prime, Advanced Trade and Coinbase Exchange.</p>— Coinbase Assets 🛡️📞 (@CoinbaseAssets) <a href="https://twitter.com/CoinbaseAssets/status/1757583581415723204?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 14, 2024</a>
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<p>The suspension was implemented on Feb. 14, shortly after PlayDapp <a href="https://crypto.news/hacker-manipulates-playdapp-minting-pla-plummets/" rel="noopener noreferrer nofollow">detected a security breach</a> on Feb. 9. This breach involved unauthorized access to the platform’s private keys, leading to the minting of 200 million PLA tokens, with an estimated value of $31 million at the time. Blockchain security firms PeckShield and Cyvers Alerts provided insights into the breach, noting a <a href="https://twitter.com/CyversAlerts/status/1756029674033971562" target="_blank" rel="noopener noreferrer nofollow">compromise in the deployer’s address</a>, which allowed the attacker to add their address as a minter.</p>
<p>In a bid to address the situation, PlayDapp initiated direct communication with the hacker, proposing a $1 million reward for the return of the stolen assets. This offer was coupled with a warning of potential legal action, including involvement from the FBI if the assets were not returned.</p>
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   <p lang="en" dir="ltr">We have contacted the hacker directly through an on-chain message and made an offer for a reward for the immediate return of all stolen contracts and assets.</p>— PlayDapp (@playdapp_io) <a href="https://twitter.com/playdapp_io/status/1756323823530680402?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 10, 2024</a>
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<p>Despite these efforts, PlayDapp’s customer service experienced downtime from Feb. 9 to 12, complicating the response efforts.</p>
<p>You might also like: <a href="https://crypto.news/nearly-90-of-california-crypto-owners-favor-pro-crypto-political-candidate-coinbase-reveals/" rel="noopener noreferrer nofollow"> Nearly 90% of California crypto owners favor pro-crypto political candidate, Coinbase reveals </a></p>
<p>Elliptic, another blockchain security firm, <a href="https://www.elliptic.co/blog/crypto-gaming-platform-playdapp-suffers-290-million-breach" target="_blank" rel="noopener noreferrer nofollow">detailed</a> the escalation of the situation with an additional minting of 1.59 billion PLA tokens, valued at $253.9 million, on Feb. 12. This vast increase in supply, compared to the pre-hack total supply of 577 million PLA tokens, significantly challenges the hacker’s ability to liquidate the assets without detection.</p>
<p>In response to the ongoing challenges, PlayDapp <a href="https://medium.com/playdappgames/urgent-notice-800d4de6d786" target="_blank" rel="noopener noreferrer nofollow">announced</a> the temporary suspension of its smart contract on Feb. 13 as part of a migration strategy to secure the platform’s operations. Following the breach, the PLA token experienced a notable drop in value, from $0.1823 to $0.1482, despite an increase in trading volume from $2.83 million to $60.17 million.&nbsp;</p>
<p>Prior to this incident, PlayDapp had made headlines for its innovative gaming solutions, such as the <a href="https://crypto.news/playdapp-along-gods-p2e-game-launches-170-countries/" rel="noopener noreferrer nofollow">Along with the Gods play-to-earn game</a> on the Polygon blockchain, despite facing sustainability challenges leading to the game service’s discontinuation in May 2023.</p>
<p>Meanwhile, PLA is not the only token recently suspended by Coinbase. In its ongoing efforts to maintain a secure and compliant trading environment, the platform had previously <a href="https://twitter.com/CoinbaseAssets/status/1694382391043702828" target="_blank" rel="noopener noreferrer nofollow">halted</a> trading for several tokens. This list includes BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX), reflecting Coinbase’s routine assessment process.&nbsp;</p>
<p>Read more: <a href="http://Coinbase Advanced introduces fee structure program for high-volume traders" target="_blank" rel="noopener noreferrer nofollow"> Coinbase Advanced introduces fee structure program for high-volume traders </a></p>

Coinbase suspends PlayDapp token trading in response to smart contract security breach

crypto.news

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