PlayDapp's PLA token minting function was exploited after a private key compromise, allowing unauthorized minting of 1.79 billion PLA tokens.
An attacker compromised the private key of PlayDapp's token minting authority. Using this key, they added themselves as a minter and proceeded to mint 200M PLA tokens in the first attack, followed by 1.59 billion PLA tokens in a second attack days later. The massive token inflation collapsed the PLA token price. PlayDapp suspended PLA contracts and proposed migrating to a new PDA token.
The attacker attempted to sell PLA tokens immediately, crashing the price. Due to liquidity constraints, only a fraction of the minted tokens were sold for significant value. Remaining tokens became largely worthless after PlayDapp suspended the contract. ETH proceeds from token sales moved through Tornado Cash. PlayDapp proposed a token swap for affected holders.
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