Crypto exchange Coinbase regularly evaluates tokens open for trading on its platform and removes them from spot trading when unfavorable factors occur. On Wednesday, Coinbase halted trading of PLA tokens after the Web3 PlayDapp gaming platform suspended its smart contract following a significant hack.
"In light of recent updates related to the suspension of the PlayDapp smart contract (PLA), we have also suspended trading and transferred PLA to Coinbase. We will continue to monitor PLA-related developments on the issuer side and will update our clients as more information becomes available," Coinbase commented.
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According to Cryptonews, the suspension of the PLA was due to difficulties arising from the PlayDapp platform hack, when a serious security breach was discovered. Fraudsters used the platform's pause feature and illegally issued 1.79 billion tokens worth a whopping 38 billion won (over $200 million). The crypto community is watching this shocking news.
The PLA token collapsed after the hack. The drop over the past week has been over 15%. At the time of writing, PLA was trading at $0.1495. Investors, spooked by the negative headlines, attempted to cut their losses, further exacerbating the token's decline.
In response to this alarming event, Coinbase took immediate action and suspended PLA trading and transfers to protect its users from potential losses. The cryptocurrency exchange is working closely with PlayDapp to assess the full extent of the damage and explore potential solutions.
PlayDapp is reportedly offering rewards for the recovery of assets. Since the hack was reported, the platform has taken steps to strengthen its security measures. It has also contacted the hacker via social media to offer a reward if the compromised assets are returned quickly.
However, if there is no quick response, PlayDapp intends to work with the FBI and other law enforcement agencies to prosecute the hacker. The company will announce a public reward and enlist the help of security vendor Web3.
To strengthen security measures, PlayDapp said it will temporarily suspend the PLA smart contract. The company also said it has mitigated a secondary attack on the unauthorized issuance of an additional 1.59 billion PLA tokens.
"Urgent communication with the centralized exchanges (CEX) enabled quick action to suspend deposits and withdrawals to mitigate losses. At the same time, hacker wallets were frozen on the major CEXs," PlayDapp reported.
PlayDapp's platform offers a wide range of blockchain networks and gaming apps, and its PLA tokens run on the Ethereum blockchain and are used to provide transactions on the platform and rewards for game developers.
