Token

Million

Gala

<div class="intro-text">Gala Games CEO Eric Schiermeyer has <a href="https://twitter.com/Benefactor0101/status/1792698768166715776?t=F5I7uvCPYNasKVbQxEClmg&amp;s=19" rel="noopener noreferrer nofollow">admitted</a> to significant internal control failures following a recent security breach that resulted in the theft of $23 million worth of GALA tokens. </div>On May 20 at 7:32 pm UTC, <a href="https://twitter.com/devops199fan/status/1792660414544879665?t=13u655VGw0x79bFYHQtrlA&amp;s=19" rel="noopener noreferrer nofollow">blockchain observers</a><a href="https://twitter.com/0xQuit/status/1792672497957302686?t=K_5DLE6TJBZD0GDyOjetDQ&amp;s=19" rel="noopener noreferrer nofollow">noted</a> that 5 billion GALA tokens, valued at $200 million at the time, were <a href="https://etherscan.io/tx/0xa6d90abe17d17743a9cecab84bcefb0fd0bbfa0c61bba60fd2f680b0a2f077fe" rel="noopener noreferrer nofollow">minted</a>. The hacker responsible managed to sell the tokens in batches, causing a sharp decline in GALA’s value.Following the incident, GALA’s price plunged to a 24-hour low of $0.038, marking a 20% drop from its daily high just an hour earlier. However, it has since recovered slightly to $0.041, according to <a href="https://www.coingecko.com/en/coins/gala" rel="noopener noreferrer nofollow">CoinGecko</a>.<blockquote class="pullquote align-center">“We had an incident that resulted in the unauthorized SALE of 600 million […] GALA tokens and the effective BURN of 4.4 billion tokens,”</blockquote>Schiermeyer <a href="https://twitter.com/Benefactor0101/status/1792698768166715776?t=F5I7uvCPYNasKVbQxEClmg&amp;s=19" rel="noopener noreferrer nofollow">stated</a> in a May 20 post on X (formerly Twitter). <blockquote class="pullquote align-center">“We messed up our internal controls. This shouldn’t have happened, and we are taking steps to ensure it doesn’t happen again.”</blockquote>Schiermeyer assured stakeholders that Gala swiftly identified the breach and revoked the unauthorized access to the GALA contract.&nbsp;He <a href="https://twitter.com/Benefactor0101/status/1792698768166715776?t=F5I7uvCPYNasKVbQxEClmg&amp;s=19" rel="noopener noreferrer nofollow">emphasized</a> that the Ethereum contract remains secure and was not compromised during the incident. Gala has since frozen the impacted wallet and contained the breach.The Gala Games team later <a href="https://twitter.com/GoGalaGames/status/1792727587460104377?t=nhOMApoITPzKtHaAhzgh-w&amp;s=19" rel="noopener noreferrer nofollow">announced </a>that it had identified the perpetrator and is collaborating with the FBI, the United States Justice Department, and various international authorities.&nbsp;However, Gala and Schiermeyer have not disclosed the individual responsible or the method used to gain access to the GALA contract.The breach comes amid ongoing legal battles between Schiermeyer and Gala Games co-founder Wright Thurston. In August 2023, both founders <a href="https://ecf.utd.uscourts.gov/doc1/18306207947?caseid=142042" rel="noopener noreferrer nofollow">filed</a> lawsuits against each other.&nbsp;Thurston accused Schiermeyer of mismanaging company assets, while Schiermeyer alleged that Thurston stole $130 million worth of GALA tokens.&nbsp;If you want to read more news articles like this, visit <a href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”The post <a href="https://defi-planet.com/2024/05/gala-games-ceo-blames-messed-up-internal-controls-for-23-million-gala-token-theft/" rel="noopener noreferrer nofollow">Gala Games CEO Blames “Messed Up” Internal Controls for $23 Million GALA Token Theft</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Gala Games CEO Blames “Messed Up” Internal Controls for $23 Million GALA Token Theft

DeFi Planet

Other articles published on May 21, 2024

Breaking: Fidelity Slashes Staking For Ethereum ETF In Latest S-1 Amendment

Ripple SEC Lawsuit: SEC Files Opposition to Sealing XRP Details, Here’s Everything

Bitcoin Exchange Balances Hit Rock Bottom: Are We On The Verge of A Major Bull Run?

Solana (SOL) Price Tops The Charts With Surge To $180: What’s Happening?

Crypto Trader Bets Big on Ethereum, Hints at ETF Approval

Ethereum Prints 'Banana Zone Candle' With Largest One-Day Market Cap Gain At $71B Following Poten...

Join our free newsletter for daily crypto updates!