Gala

Gala Games has successfully recovered approximately $22 million in Ether (ETH) following a major security breach on May 20 that saw $200 million worth of Gala (GALA) tokens illicitly minted and partially sold. The individual behind the attack returned the funds to Gala Games after the company’s swift response and collaboration with federal law enforcement agencies.
In a detailed<a href="https://news.gala.com/galachain/unauthorized-wallet-locked-down-in-record-time-funds-returned-as-security-measures-prove-effective/" rel="noopener noreferrer nofollow"> blog post</a> on May 21, Gala Games revealed that the attacker’s wallet had<a href="https://etherscan.io/tx/0x273c6b54fea8b0d616fb3270698dd4387ec3fefc7b0e290330b4019c35a984b1" rel="noopener noreferrer nofollow"> sent</a> back 5913.2 ETH, valued at $22.3 million. This amount closely corresponds to the market value of the 600 million GALA tokens that the attacker sold shortly before the platform was able to freeze the wallet.
<h2 id="span-style-font-weight-400-comments-from-gala-ceo-span">Comments from Gala CEO</h2>
<a href="https://thecoinrise.com/gala-games-co-founders-file-lawsuits-against-each-other/" rel="noopener noreferrer nofollow">Gala’s co-founder and CEO</a>, Eric Schiermeyer,<a href="https://x.com/Benefactor0101/status/1792698768166715776" rel="noopener noreferrer nofollow"> commended</a> the team for their rapid and effective action, which included the deployment of GalaChain’s blocklist protocol.&nbsp;
This new feature enabled the freezing of 4.4 billion GALA tokens out of the 5 billion minted within a 45-minute window. In a series of posts on X (formerly Twitter) and Discord, Schiermeyer also mentioned that the identity of the attacker had been determined, including his home address.
Further, the <a href="https://thecoinrise.com/dutch-authorities-nabbs-zkasinos-crypto-scam-suspect-12-2m-recovered/" rel="noopener noreferrer nofollow">recovery marks a significant step</a> in combating the exploiter despite a fraction of the actual amount being recovered.
<h3 id="span-style-font-weight-400-method-of-exploit-span">Method of Exploit</h3>
While Gala Games has not officially confirmed the identity or method of the exploit, community members speculated that the attack was carried out by a security contractor who inadvertently exposed the wallet’s credentials by connecting without a VPN. This claim, however, remains unverified by the platform.
Schiermeyer indicated that the returned ETH would likely be used to repurchase and burn the equivalent amount of GALA tokens. “I don’t see anything else we should do with the ETH,” he wrote. “We will probably buy and burn on GalaSwap.”
<h2 id="span-style-font-weight-400-gala-initiated-vote-to-burn-tokens-span">Gala Initiated Vote to Burn Tokens</h2>
Additionally, Gala Games<a href="https://x.com/GoGalaGames/status/1792727587460104377" rel="noopener noreferrer nofollow"> initiated</a> a governance vote to decide whether the 4.4 billion blocklisted GALA tokens should be considered burned. This move aims to <a href="https://thecoinrise.com/gala-games-reacts-to-rug-pull-speculations-after-gala-dropped-by-90/" rel="noopener noreferrer nofollow">restore confidence in the token’s value</a> and the integrity of the platform.
In a related development, DWF Labs disclosed its acquisition of 28 million tokens on the open market, an effort aimed at stabilizing the token’s value. “The security of our investments and their communities is important to us,” the firm stated.
<h3 id="span-style-font-weight-400-working-with-law-enforcement-span">Working with Law Enforcement</h3>
Schiermeyer acknowledged the failure in internal controls that allowed the security breach to occur. “We messed up our internal controls,” he admitted. “This shouldn’t have happened, and we are taking steps to ensure it doesn’t happen again.”
Despite the breach, Schiermeyer reassured users that the Ethereum contract itself was secure and had not been compromised. He also noted that the platform is working closely with the <a href="https://thecoinrise.com/fbi-arrests-a-new-york-dark-web-market-owner-after-tracing-crypto/" rel="noopener noreferrer nofollow">Federal Bureau of Investigation</a>, the United States Justice Department, and a network of international authorities to address the situation.
The post <a href="https://thecoinrise.com/gala-games-recovers-22m-in-eth-after-a-200m-exploit/" rel="noopener noreferrer nofollow">Gala Games Recovers $22M in ETH After a $200M Exploit</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Gala Games Recovers $22M in ETH After a $200M Exploit

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