Gala Games, a blockchain gaming platform, successfully recovered around $22 million worth of Ether (ETH) from the perpetrator involved in a recent security breach. The incident transpired on May 20, when the attacker illicitly generated Gala (GALA) tokens valued at $200 million and traded a fraction of them before the unauthorized activity was halted. The attacker’s wallet returned 5913.2 ETH, equivalent to $22.3 million, to Gala Games on Tuesday. According to a blog post by Gala Games, the quick retrieval was attributed to their prompt action and collaboration with federal law enforcement agencies.
Utilization of GalaChain’s Protocol
Gala Games leveraged GalaChain’s blocklist protocol to freeze 4.4 billion GALA tokens out of the total 5 billion minted within a short span of 45 minutes, effectively containing the breach’s impact.
Even though Gala Games has not divulged the identity or methods of the perpetrator, some community members suggest that a security contractor might have inadvertently accessed the wallet without using a VPN. Eric Schiermeyer, the co-founder and CEO of Gala Games, conveyed in a Discord post their intention to repurchase the GALA tokens equivalent to the returned ETH and subsequently eliminate them to address the repercussions of the breach and fortify the Gala ecosystem.
Moreover, Gala Games announced a governance vote to determine the fate of the blocklisted 4.4 billion GALA tokens, deliberating whether to signify them as “burned,” effectively eliminating them from circulation. Concurrently, DWF Labs, a technology company, revealed its acquisition of 28 million GALA tokens from the open market to stabilize the token’s valuation. They emphasized the significance of protecting investments and nurturing their communities.
Lawsuits Between Gala Games Co-Founders
Co-founders of Gala Games, Eric Schiermeyer and Wright Thurston, are currently embroiled in legal disputes, alleging each other of misconduct and embezzlement of company assets valued at millions of dollars. Schiermeyer’s lawsuit alleges that Thurston, along with his investment entity True North United, inappropriately obtained GALA tokens worth $130 million, initially purportedly for the benefit of Gala Games, engaging in deceptive transactions including unauthorized transfers, exchanges, or sales of the tokens.
Thurston, on the other hand, filed a counterclaim accusing Schiermeyer of mismanagement within Blockchain Game Partners, the registered entity of Gala Games. He accuses Schiermeyer of misusing $600 million of company resources and diverting millions for personal gain. Both co-founders are seeking to oust each other from their positions as directors of the company.
