The Gala gaming community was horrified after wallets printed $1 billion worth of GALA tokens at the end of November 3rd, with assets dropping nearly 30% in value.
Blockchain security firm PeckShield raised concerns about possible hacking, but pNetwork’s team was quick to say they were responsible for the white hat attack. pNetwork provides routing infrastructure services for his DeFi and gaming tokens, including GALA.
Hi @GoGalaGameswe suggest you take a look at: https://t.co/IfUMdTHz07
— PeckShield Inc. (@peckshield) November 3, 2022
The pNetwork team said it realized pGALA tokens were no longer secure and adjusted its attacks to prevent malicious players from taking advantage of the situation. The statement concerns his PancakeSwap (CAKE) pool, which is flawed and unusual activity has been initiated to drain liquidity from the pool.
1/n pGALA on BSC notification: Misconfiguration https://t.co/Tpj4G7IkUe Bridge required redeployment of pGALA. We are working directly with the Gala team and exchanges to provide the necessary pGALA balances to restore the functionality of pGALA deposits and withdrawals.
— pNetwork 🦜 (@pNetworkDeFi) November 3, 2022
The pNetwork team has revealed that the issue was caused by a “p.Network bridge misconfiguration”. However, her GALA token on Ethereum (ETH) and the underlying bridge collateral remain safe.
The GALA bridge is temporarily suspended and a new pool is created. According to the team, a new pGALA token will be sent and all addresses will be restored to their previous positions.
However, after the announcement, anyone who purchased pGALA on PancakeSwap will not be able to redeem their newly purchased pGALA, so they risk losing everything.
Meanwhile, GALA token dropped more than 20% to $0.0293 due to exploit fears. The Play-to-Earn token has started to recover and is currently trading at $0.035, according to CryptoSlate data.
Profit for Arbitrage Traders
Arbitrage traders took advantage of a white hat attack on Gala tokens in the PancakeSwap pool, resulting in a $6.5 million profit for one trader.
2/ Then he transferred 21.1M $GALA ($674,701) ～ #binance Before Binance closed deposits and withdrawals, it was selling at around $0.032.
and transferred 385.8M $GALA ($5.79M) to #huobiwhich sells for about $0.015.
He made a total profit of $6.5 million.https://t.co/jz2vGqtmEF pic.twitter.com/nxV2G6kc1A
— Lookonchain (@lookonchain) November 4, 2022
According to Lookonchain’s Twitter thread, arbitrage traders found the dumped tokens from PancakeSwap and started buying them, moving the coins to Huobi and immediately started selling them.on-chain detective continuation Huobi’s GALA price dropped 99% from $0.04 to $0.0003.
online detective gala The 24-hour trading volume on Huobi was 25.65 billion tokens, worth $134.5 million, with an average trading price of $0.005247.
A centralized exchange coercion Temporarily delisting GALA tokens due to “significant and uncontrollable risk resulting from catastrophe”.
