Grand Base (GB), a real-world asset tokenization protocol operating on Coinbase’s native layer-2 blockchain, suffered a loss of $1.7 million following a compromise of private keys. The breach shook the crypto community and led to the loss. This event caused the GB price to plummet almost entirely, dropping by 99% shortly after the information about the hack was made public.
As a result, an administrator of Grand Base addressed the issue on the protocol’s official Telegram channel and advised users to cease all activities related to the compromised contracts. He said, “Our contracts were exploited at 03:01:27 +UTC on April 15th. Due to this specific reason, we urge all our community members to stay away from this contract as it is no longer safe.” The administrator also wrote, “Please withdraw your LP immediately. We apologize for all this situation.”
It was revealed that the attacker took advantage of control over deployer contracts to mint additional GB tokens removed from liquidity pools. This illicit minting led to a rapid devaluation of the GB token due to the supply far exceeding the demand. As the disaster unfolded, the management of Grand Base reported that they were attempting to track the hacker’s wallets and were also collaborating with centralized exchanges to prevent the recovery of any funds.
A spokesperson from Grand Base said, “The team is working tirelessly day and night to address the security breach and minimize further risk to our users.”
This drastic drop not only affected individual investors but also weakened the security features of some new blockchain protocols. As a result, discussions within the Grand Base community intensified around the impact of the hack on future operations and the long-term viability of the GB token.
Building a Better Future through Effective Security
We must strengthen security measures to prevent future attacks. Through advanced protocols and comprehensive controls, we can protect digital assets from unauthorized access and malicious activities. These breaches highlight the need for effective and innovative security solutions that traditional security measures cannot address. Additionally, these solutions will increase confidence in decentralized finance and digital assets shaken by these breaches by enabling recovery after an attack.
