Ethereum

In an escalating internal conflict, co-founders of <a href="https://cryptodaily.co.uk/2023/08/best-play-to-earn-and-gambling-projects" rel="noopener noreferrer nofollow">blockchain gaming</a> platform Gala Games, Eric Schiermeyer and Wright Thurston, have filed dueling lawsuits against each other. Both suits were filed on Aug. 31 in a Utah District Court, each alleging serious misconduct by the other.Schiermeyer, who is also the CEO of <a href="https://cryptodaily.co.uk/2023/08/gala-games-studios-aaa-games-are-coming-later-this-year" rel="noopener noreferrer nofollow">Gala Games</a>, filed a lawsuit accusing Thurston and his investment firm, True North United Investments, of stealing approximately $130 million in GALA tokens, which are integral to the Gala Games ecosystem, which itself is one of the stalwarts in <a href="https://cryptodaily.co.uk/2023/08/from-play-to-earn-to-virtual-reality-the-thriving-subgenres-of-crypto-gaming" rel="noopener noreferrer nofollow">blockchain gaming</a> as a sector.The suit claims that the tokens were initially moved to a company-controlled wallet but were subsequently shifted into 43 other wallets by Thurston. Schiermeyer alleges that these tokens were then sold or exchanged through a &#34;complex web of obfuscatory transactions&#34; between September 2022 and May 2023.Thurston, who initially claimed to be securely holding the tokens for Gala, later argued that the sold tokens were his own—a claim that Schiermeyer&#39;s lawsuit refutes. Notably, Thurston is accused of appropriating licenses to operate nodes in the Gala ecosystem, licernses which can earn GALA tokens. According to the suit, Thurston sold these licenses and retained the proceeds.On the same day, a lawsuit was filed by Thurston&#39;s investment firm True North, accusing Schiermeyer of wasting millions in compafny assets and funneling company funds for personal use.The lawsuit alleges that Schiermeyer created Gala subsidiaries in Switzerland and Dubai, making himself the controlling shareholder to pursue business opportunities without Thurston’s input. The suit also claims that Schiermeyer provided incomplete or incorrect corporate records to Thurston &#34;despite repeated requests.&#34;Both lawsuits are seeking the removal of the other as a Gala director and are claiming various forms of relief and damages. Schiermeyer&#39;s suit seeks the return of the allegedly stolen GALA tokens, while Thurston&#39;s lawsuit is demanding at least $750 million in various damages and relief.This legal turmoil follows an earlier lawsuit in March, in which the U.S. Securities and Exchange Commission sued Thurston, True North, and another company he founded, Green United, for allegedly selling investments in a fraudulent crypto mining scheme. The lawsuits raise critical questions about the firm&#39;s governance and financial management at <a href="https://cryptodaily.co.uk/2023/08/jason-brink-of-gala-games-interview-with-cryptodailys-scott-cunningham" rel="noopener noreferrer nofollow">Gala Games</a>, as both co-founders are now embroiled in allegations that, if and once proven, could have severe implications for the future of the company.Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Note: This story is currently developing and CryptoDaily will update this article with relevant information when available and as the matter unfolds.RELATED TOPICS: <a href="https://cryptodaily.co.uk/tags/business" rel="noopener noreferrer nofollow">#BUSINESS</a>

Gala Games Founders Sue Each Other Over Alleged $130m Theft

Crypto Daily™

Other articles published on Sep 4, 2023

Stellar (XLM) Surges 11% in Single Day; Here's Likely Reason

Today in Crypto: Attorney Says Ads Featuring Celebrities Don't Distinguish Between FTX & FTX.US M...

UPST Stock Struggles to Defend $30; Is Upstart Stock Bearish?

Near Protocol Price Forecast: Will NEAR Price Break Out Now?

99% of Nigerians are crypto aware - Consensys report

Top Cryptos To Buy in 2023: Cardano, Polkadot, and Watchvestor

Join our free newsletter for daily crypto updates!