Gala Games Faces $206 Million Exploit as GALA Token Drops 15%
Written with artificial intelligence.
Gala Games, a key player in the web3 gaming sector, has experienced a significant security breach, leading to the minting of 5 billion GALA tokens valued at around $206 million. Following the exploit, the GALA token's price decreased by nearly 15%.
Gala Games Exploit Details
Gala Games has reportedly been targeted by an exploit that resulted in the unauthorized minting of 5 billion GALA tokens, estimated to be worth approximately $206 million, as stated by blockchain explorer Etherscan. The incident occurred on May 20, causing the GALA token to drop nearly 15%, from $0.0467 to $0.0397. The token’s price has seen a slight recovery, with a 1.26% decline over the past day.
Previous Incidents
This exploit is not an isolated incident for Gala Games. In 2021, the company suffered a theft involving around 8.65 billion GALA tokens, leading to a loss of $130 million. Co-founder Eric Schiermeyer subsequently filed a lawsuit against co-founder Wright Thurston, alleging his involvement in the hack and the improper handling of the stolen tokens. Thurston countered with his own lawsuit, claiming Schiermeyer misused company funds.
Ongoing Legal Issues
In addition to these internal disputes, Thurston and one of his companies are facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly selling $18 million in unregistered securities linked to a cryptocurrency named GREEN, which is associated with a decentralized energy grid initiative.
Company Background
Gala Games was founded by Eric Schiermeyer, who previously co-founded Zynga, and Michael McCarthy, a former creative director at Zynga. The company aims to revolutionize the gaming industry through blockchain technology and decentralized gaming experiences.