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Gala

Gala Games has received around $22 million in Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) from the person responsible for a May 20 “security incident” where $200 million worth of Gala (<a href="https://cointelegraph.com/gala-price-index" rel="noopener noreferrer nofollow">GALA</a>) tokens were minted and a small portion sold before the wallet was frozen.
On May 21, the attacker’s wallet <a href="https://etherscan.io/tx/0x273c6b54fea8b0d616fb3270698dd4387ec3fefc7b0e290330b4019c35a984b1" target="_blank" rel="noopener noreferrer nofollow">sent</a> back 5913.2 ETH worth $22.3 million — close to the market value of the 600 million GALA they sold a day earlier.
Gala <a href="https://news.gala.com/galachain/unauthorized-wallet-locked-down-in-record-time-funds-returned-as-security-measures-prove-effective/" target="_blank" rel="noopener noreferrer nofollow">said</a> in a May 21 blog post that the ETH’s return came after the team’s “swift, effective response and the involvement of Federal law enforcement agencies.”
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/0ec0bb6f-c27d-4282-b7a6-cbc1c0a15894.PNG">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/BitBenderBrink/status/1792926709680931226" target="_blank" rel="noopener noreferrer nofollow">Jason Brink</a>
 </figcaption>
</figure>
Gala said it used a new “GalaChain’s blocklist protocol” feature to effectively freeze 4.4 billion GALA from the 5 billion minted within 45 minutes.&nbsp;
<a href="https://cointelegraph.com/news/gala-games-founders-sue-court-token-theft-corporate-waste" rel="noopener noreferrer nofollow">Gala’s co-founder and CEO</a>, Eric Schiermeyer, said in a May 20 X and Discord post that the alleged attacker had been identified, including “his home address.”
Gala Games has not publicly confirmed the identity or method of the exploit, but some community members <a href="https://x.com/BitBenderBrink/status/1792991458011578417" target="_blank" rel="noopener noreferrer nofollow">claim</a> Gala had said the attack was from a security contractor who slipped up after connecting to the wallet without a VPN.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/353f4f85-ef61-4864-ac5d-9c726c241821.PNG">
 <figcaption style="text-align: center;">Spfrom a Gala Games community member. Source: Discord
 </figcaption>
</figure>
Schiermeyer said in a Discord post that the team will likely buy back and burn the equivalent GALA tokens using the returned ETH.
“I don’t see anything else we should do with the eth,” Schiermeyer wrote. “We will probably buy and burn on galaswap.”
Meanwhile, a Gala Games blog post suggested a governance vote is being conducted to decide if the 4.4 billion blocklisted GALA will be “considered burned.”
Related: <a href="https://cointelegraph.com/news/gala-games-internal-controls-compromise-messed-up-ceo" rel="noopener noreferrer nofollow">Gala Games CEO blames $23M exploit on ‘messed up’ internal controls</a>
The string of developments comes as <a href="https://cointelegraph.com/news/binance-cofounder-dwf-labs-speaks-out-against-market-manipulation-allegations" rel="noopener noreferrer nofollow">DWF Labs</a> revealed it <a href="https://x.com/DWFLabs/status/1792928187917177030" target="_blank" rel="noopener noreferrer nofollow">purchased</a> 28 million GALA tokens in the open market to “stabilize the token’s value.”
“The security of our investments and their communities is important to us,” said the firm.
GALA is up 0.4% in 24 hours to $0.043 — up 9.3% over the last seven days, <a href="https://www.coingecko.com/en/coins/gala" target="_blank" rel="noopener noreferrer nofollow">according</a> to CoinGecko.
Magazine: <a href="https://cointelegraph.com/magazine/2500-film-about-ftx-collapse-amazon-prime-with-help-from-mom/" rel="noopener noreferrer nofollow">The $2,500 doco about FTX collapse on Amazon Prime… with help from mom</a>

Gala Games exploiter returns $22M from GALA token attack

Cointelegraph

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