Gala Games, a prominent web3 gaming company, has reportedly fallen victim to an exploit, resulting in the minting of 5 billion GALA tokens, valued at approximately $206 million.
Gala Games, a prominent web3 gaming company, has reportedly fallen victim to an exploit, resulting in the minting of 5 billion GALA tokens, valued at approximately $206 million, according to blockchain explorer Etherscan. The platform's native token, GALA, plummeted by nearly 15% from $0.0467 to $0.0397 following the incident on May 20, Over the past day, the token's price has experienced a decline of 1.26%, with prices recovering slightly.
This is not the first time Gala Games has faced such an incident. Earlier in 2021, the company suffered a theft of $130 million when approximately 8.65 billion GALA tokens were stolen. Co-founder Eric Schiermeyer filed a lawsuit against his fellow co-founder, Wright Thurston, accusing him of participating in the hack. The lawsuit alleged that Thurston falsely claimed to hold the stolen GALA tokens in secure wallets for the benefit of Gala Games but later began exchanging and selling them, resulting in approximately $130 million in transactions before the company could intervene.
In response, Thurston filed his own lawsuit against Schiermeyer, alleging the misuse of company funds for personal purposes. Additionally, in March 2023, Thurston and one of his companies were sued by the United States Securities and Exchange Commission (SEC) for allegedly selling $18 million worth of unregistered securities related to a cryptocurrency called GREEN, associated with a global decentralized power grid.
Gala Games was founded by industry veterans including Schiermeyer, who co-founded mobile gaming firm Zynga, and Michael McCarthy, a former creative director at Zynga.
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