Grand Base Protocol Reportedly Exploited For $2M Exploit: What We Know

Grand Base, a decentralized finance (DeFi) protocol, finds itself at the center of a major breach, resulting in the loss of over $2 million. 

Blockchain security firm Certik has uncovered the details of the breach, revealing that a malicious actor gained access to the Grand Base deployer's wallet and minted tokens.

These freshly minted tokens were then exchanged and bridged into the Ethereum ecosystem, increasing the protocol's losses. The unauthorized access led to a series of transactions, resulting in the dramatic sell-off of assets valued at approximately $2 million. 

The ensuing chaos caused the GB token's value to plummet by over 99%, severely destabilizing the market.

GB Token Chart (Source: Coingecko)

Collaborative efforts with the MEXC crypto exchange are reportedly underway to suspend trading activities associated with the compromised tokens, according to a spokesperson on Telegram.

Experts at Cyvers, a security firm specializing in AI Web3, describe the severity of the situation, emphasizing how the attacker's ability to mint new tokens intensified the financial repercussions and exposed critical security flaws. They stress the importance of implementing enhanced security protocols and vigilant monitoring to mitigate such devastating losses in the future.

Grand BaseFi: From Traction to Scrutiny

Grand Base was launched in early 2024 as a decentralized marketplace for spot synthetic real-world assets (RWAs). 

Despite gaining significant traction and boasting millions of dollars in daily trading volumes for its GB token, the project faced scrutiny due to a flaw in its smart contract. This flaw allowed developers to mint new tokens without any restrictions, as highlighted by CoinGecko.