Major Breach at Grand BaseFi Leads to $2 Million Loss and 99% Token Devaluation

Grand Base, a decentralized finance (DeFi) protocol, has found itself at the center of a major breach that has resulted in the loss of over $2 million. The exploit, attributed to a compromised private key, led to unauthorized transactions and a dramatic devaluation of the GB token by over 99%.

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 tokens were then exchanged and bridged into the Ethereum ecosystem, leading to a series of transactions that resulted in the sell-off of assets valued at approximately $2 million. This chaos caused the GB token’s value to plummet, severely destabilizing the market.

Collaborative efforts with the MEXC crypto exchange are reportedly underway to suspend trading activities associated with the compromised tokens. Experts at Cyvers, a security firm specializing in AI Web3, emphasize the severity of the situation and stress the importance of implementing enhanced security protocols to prevent such devastating losses in the future.

Grand Base, launched in early 2024 as a decentralized marketplace for spot synthetic real-world assets (RWAs), had gained significant traction and boasted millions of dollars in daily trading volumes for its GB token. However, the project faced scrutiny due to a flaw in its smart contract that allowed developers to mint new tokens without restrictions. This flaw has now been exploited, leading to significant financial repercussions for the protocol.