The Grand Base (GB) protocol, a platform for the tokenisation of real-world assets operating on Coinbase's native layer-2 blockchain, recently experienced a significant security breach.

An admin from Grand Base revealed that the protocol lost $1.7 million due to the compromise of a private key, urging the community to remove their liquidity positions (LP) as soon as possible due to safety concerns.

The attack occurred on April 15, prompting an immediate response from the administration warning users through the protocol’s Telegram chat about the unsafe status of the contract involved.

Blockchain analytics firm PeckShield indicated that the compromise led to the theft of tokens from the protocol's liquidity pools.

These tokens were then exchanged for Ether (CRYPTO:ETH) and transferred to an external address.