GALA Plunges 5% After Gala Games Is Hit By $200 Million Exploit

Web3 gaming agency Gala Video games (GALA) plunged greater than 5% after an obvious exploit price about $206 million recognized by on-chain sleuth Etherscan.

Somebody minted 5 billion GALA tokens on Could 20, Etherscan mentioned, triggering a 15% plunge within the GALA value to $0.0397. It has since pared losses to commerce at $0.04136 as of 5:20 a.m. EST.

The incident has been contained and impacted wallets had been frozen, the undertaking mentioned in a Could 21 submit on X. It added that it’s “working intently with regulation enforcement to research the people behind the breach.” 

The safety incident involving the $GALA token has been contained and the impacted pockets has been frozen.

This was an remoted incident, the reason for which has been addressed and we’re working intently with regulation enforcement to research the people behind the breach.…

— Gala Video games (@GoGalaGames) May 21, 2024

Historical past Repeats Itself As Gala Video games Hit With One other Multi-Million Greenback Exploit

This isn’t the primary exploit that Gala Video games has suffered, with the undertaking shedding about 8.65 billion GALA tokens price $130 million at first of 2021. One of many agency’s co-founders, Eric Schiermeyer, went on to sue the opposite co-founder, Wright Thurston, for his alleged involvement within the incident.

When Thurston was confronted, he “falsely acknowledged that he merely supposed to carry the GALA in safe wallets for the advantage of Gala Video games,” in line with an August 2023 lawsuit. 

“He was capable of alternate, cover or promote roughly $130 million price of the stolen GALA tokens earlier than Gala Video games might cease him,” the lawsuit alleged. Thurston subsequently “enriched himself by means of his sample of deception,” it added.

Thurston Counters With A Lawsuit Of His Personal

Thurston responded to Schiermeyer’s accusations with a lawsuit of his personal on the identical day. He claimed that Schiermeyer used firm funds for private use.

In March 2023, the US Securities and Change Fee (SEC) additionally sued Thurston, together with one among his different firms. The SEC accused him and the corporate of promoting unregistered securities price $18 million within the type of GREEN, a crypto linked to a public international decentralized energy grid. 

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