- On Monday, there was a hack on the web3 gaming platform Gala Games’ treasury.
- Five billion GALA tokens, valued at more than $200 million, were created.
- GALA dropped by around 15% as a result of the hack.
According to the blockchain explorer Etherscan, Gala Games, a web3 gaming company, appears to have fallen victim to an exploit on Monday, with someone minting 5 billion GALA -2.95% tokens, or roughly $206 million.
GALA, the platform’s native token, fell over 15% after the incident, from $0.0466 to $0.0398 on May 20.
The token’s price decreased by 5.77% overall in the last day. With 40.6 billion shares in circulation, GALA retains a $1.7 billion market capitalization.
Gala Games lost $130 million in the first quarter of 2021 as a result of the theft of almost 8.65 billion GALA tokens. Wright Thurston, the other co-founder of the company, was sued by co-founder Eric Schiermeyer for allegedly taking part in the hack.
Thurston lied when asked about his theft of the company’s GALA, saying, according to the August 2023 complaint, that he only meant to keep the GALA in safe places for Gala Games’ benefit. But this year, in a convoluted series of obfuscatory activities, Thurston and/or (his organization) started removing the pilfered tokens from those wallets and trading or selling them.
Before Gala Games could stop him, he was able to trade, conceal, or sell over $130 million worth of the stolen GALA tokens. Earlier in the case, Schiermeyer stated that Thurston’s dishonesty has allowed him to amass wealth.
Thurston filed a lawsuit of his own against Schiermeyer, alleging that he utilized business cash for personal expenses.
In March 2023, Thurston and another of these firms were sued by the US Securities and Exchange Commission for allegedly offering $18 million worth of unregistered securities in the form of GREEN, a cryptocurrency connected to a public worldwide decentralized power system.
Co-founder of the company Schiermeyer also co-founded Zynga, a mobile game company. Michael McCarthy, a former Zynga creative director, is the third co-founder of Gala Games.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
