The original token of the crypto gaming project Gala Games plunged sharply on Monday amid concerns over a massive transfer of more than $200 million in GALA tokens that traders feared was a hack, and then recovered after the company said the security incident had been “under control and affected crypto wallets have been frozen.”
Chronology of Genesis

On Monday, an unknown party minted 5 billion Gala tokens and began selling them on decentralized exchange Uniswap , according to blockchain explorer. Gala Games representatives did not previously announce the activity or provide a brief explanation on the project's Discord server, prompting concerns that the mass printing and sales were a hack.
Eric Schiermeyer , CEO of Gala Games also known as Benefactor, said in a post on X that the company “identified the compromise and within 45 minutes we secured and removed unauthorized access to the $GALA contract.” “It is important to note that our ETH contracts for $GALA are secure and under the protection of multi-sig wallets. It was never compromised,” he wrote.
“It is important to note that our ETH contracts for $GALA are secure and under the protection of multi-sig wallets. It was never compromised.” Schiermeyer said the company had contacted the FBI, the US Department of Justice and “a network of international authorities.”
Impact and Recovery

GALA price plummeted as low as $0.039 afterward, down 19% from the day's high set more than an hour earlier. It has since recovered, and stabilized at $0.042, according to CoinGecko data.
Closing
This security incident is an important reminder of the importance of security in the world of cryptocurrency. Companies must take the necessary steps to protect their assets and their users from potential attacks.
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This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#GALA #GalaGames

Gala Games CEO Eric Schiermeyer has confirmed that a "security incident" led to the unauthorized sale of 600 million GALA tokens, worth approximately $23 million. The breach, which Schiermeyer attributed to "messed up" internal controls, has raised significant concerns within the blockchain gaming community.
Incident Overview
On May 20, at 7:32 pm UTC, blockchain observers reported the minting of 5 billion GALA tokens, valued at around $200 million at the time. The compromised wallet was selling the tokens in batches, leading to a sharp drop in GALA's price. The token hit a 24-hour low of $0.038, a 20% decrease from its daily high, before recovering slightly to $0.041, according to CoinGecko.
“We had an incident that resulted in the unauthorized sale of 600 million GALA tokens and the effective burn of 4.4 billion tokens,” Schiermeyer wrote in a May 20 post on X (formerly Twitter). He admitted, “We messed up our internal controls. This shouldn’t have happened, and we are taking steps to ensure it doesn’t happen again.”
Response and Mitigation
Gala Games quickly identified the compromise and revoked unauthorized access to the GALA contract. Schiermeyer assured users that the Ethereum contract was secure and had not been compromised. The company believes it has identified the person responsible and is collaborating with the FBI, the U.S. Justice Department, and international authorities to address the incident.
In a follow-up post on X, Gala Games announced that the security breach had been contained and the affected wallet frozen. However, details about the perpetrator and the method of access to the GALA contract remain undisclosed.
Ongoing Legal Disputes
This security incident occurs amid ongoing legal battles between Schiermeyer and Gala Games co-founder Wright Thurston. Both have filed lawsuits against each other, with Thurston accusing Schiermeyer of squandering millions in company assets, while Schiermeyer alleges that Thurston stole $130 million worth of GALA tokens.
Gala Games did not respond to requests for additional comments.
The incident underscores the critical need for robust internal controls and security measures in the cryptocurrency and blockchain industries, as companies continue to navigate complex technological and legal landscapes.
$GALA #GALA #GalaGames #hack

Notice:
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Gala Games, a pioneer in Web3 entertainment, has filed a lawsuit against pNetwork, a cross-chain bridge provider, for negligence and tortious interference with business expectancy.

The lawsuit alleges that pNetwork failed to address a misconfiguration in its code, which caused a false appearance of a $1 billion hack, leading to a disruption in the market for Gala’s native token, GALA. Gala claims that the incident required a substantial expenditure of over $25 million to address the aftermath of the breach and caused reputational harm due to the market disruption.

The lawsuit states that pNetwork admitted to mistakenly leaking a governance key when deploying the pGALA bridge, which was later used by an attacker to breach the pGALA contract on the Binance Smart Chain (BSC). The recovery plan presented and executed by pNetwork failed to recover the assets that were the subject of the attack, causing further harm. Gala alleges that pNetwork sought to increase the utilization of its platform by issuing pGALA and that pNetwork benefited from its association with Gala Games. Therefore, pNetwork owed Gala a duty of care to avoid causing harm to the company or tokens.

The GALA tokens are an essential component of Gala’s business, and pNetwork was aware of the prospective economic advantage in the value of GALA tokens as the entire function of pGALA is tied to the utility of GALA tokens itself. When pNetwork negligently and recklessly caused a security breach and intentionally carried out a failed recovery plan that caused further harm, it negatively impacted the market’s perception of Gala and the GALA tokens, damaged Gala’s reputation, and caused harm to its relationships with exchanges.

Gala is seeking $27,671,934.80 for the out-of-pocket costs due to the breach, additional compensation for injuries, punitive damages, and other relief the court would deem just and equitable.

The breach occurred on November 3, 2022, when pNetwork informed Gala that the contract on the Binance Smart Chain had been breached due to pNetwork engineers mistakenly leaving a key in the public GitHub repository. pNetwork proposed a plan to deactivate the bridge and then emergency whitehat exploit their own contract. Gala and pNetwork contacted exchanges to alert them to the breach and immediately suspended deposits and withdrawals of the BEP-20 all pGALA. Following this, pNetwork initiated their whitehat attack, which was supposed to last for 2-3 minutes.

Gala Games is a Web3 games company that uses decentralization, player ownership, and reward economies to create a revolutionary new way of gaming. The company has dozens of games on the horizon and several already in various stages of presale or beta play. Gala Games is quickly becoming the world leaders in own-your-experience gaming.

#GalaGames #pNetwork #Web3 #Lawsuit #azcoinnews

This article was republished from azcoinnews.com

Huobi and Web3 gaming project Gala Games have announced that they will compensate victims of a hack on pNetwork that occurred last fall. The two companies have stated that they will be reimbursing victims with a total of $50 million in crypto and software licenses, with the compensation to be distributed within the next few weeks.

Huobi has pledged $25 million in compensation, consisting of $15 million in USDT and $10 million in equity. Gala Games has promised $25 million in node compensation. The reimbursement is intended for those who lost funds during the hack, which saw a large amount of GALA tokens dumped onto the market, causing the price to plummet.

The hack was eventually claimed by pNetwork, a cross-chain bridge project for the Binance Smart Chain. At the time, pNetwork had discovered a vulnerable pGALA pool on PancakeSwap and had taken it upon themselves to attack the vulnerability to prevent malicious actors from exploiting it. However, despite the attack being a “white hat” one, the failure to communicate this to the community resulted in significant losses for GALA holders.

The compensation is just one of the measures that Huobi and Gala Games are taking to address the issue from last year. In March, Gala Games filed a lawsuit seeking $27.7 million in damages from pNetwork. Huobi has now also announced its participation in the lawsuit in order to “recover losses, protect reputation, and benefit users.”

It is important to note that this incident highlights the risks associated with investing in cryptocurrencies and decentralized finance projects, as they are still largely unregulated and susceptible to hacks and other security breaches. While the compensation offered by Huobi and Gala Games is a positive step towards remedying the losses suffered by victims of the pNetwork hack, it also serves as a reminder to investors to exercise caution when investing in this emerging and volatile market.

#Huobi #pNetwork #GalaGames #GALA #azcoinnews

This article was republished from azcoinnews.com

The world of Web3 gaming startup Gala Games has become embroiled in a legal feud, with significant allegations of corporate wrongdoing surfacing. Gala Games CEO and Co-founder, Eric Schiermeyer, is facing a lawsuit filed by True North United Investments LLC, representing Blockchain Game Partners (BGP), Inc., and investors in Gala Games. The complaint, filed last Thursday, accuses Schiermeyer of "corporate waste, conversion, and unjust enrichment," and calls for his removal as a director and president of BGP.

Allegations of Underhanded Actions

The lawsuit paints a concerning picture of Schiermeyer's actions within the company, alleging a series of underhanded schemes and questionable dealings conducted without the knowledge or approval of shareholders. These alleged actions include:

Directing BGP to burn $600 million in tokens.

Using BGP funds for personal purposes, including loans worth millions of dollars made to himself.

Establishing entities in Switzerland and Dubai, positioning himself as the controlling shareholder.

Keeping Wright Thurston, True North's manager and BGP director, in the dark with incomplete and inaccurate financial information, and refusing to provide complete financial records.

Serious Damage and Threats to Shareholders

The complaint asserts that Schiermeyer's ongoing actions have inflicted serious damage to BGP and continue to pose a threat. Furthermore, it claims that these actions have harmed the rights and interests of True North and various other minority shareholders, both under the Founders Agreement and as a result of True North's 44.762% ownership stake in BGP.

Litigation Landscape

The lawsuit was filed in Utah, with Salt Lake City identified as the intended venue for the legal battle. True North United Investments LLC, the plaintiff, comprises various trusts, including WWT Legacy Trust, SMT Legacy Trust, FRT Legacy Trust, TMT Legacy Trust, WJT Legacy Trust, TBT Legacy Trust, AMT Legacy Trust, and NET Legacy Trust.

It's important to note that Schiermeyer also filed a lawsuit on August 31, accusing True North and Thurston of misappropriating 8,645,014,077 GALA tokens in 2021, further escalating the legal conflict within Gala Games.

Conclusion

The legal dispute surrounding #GalaGames and its CEO, Eric Schiermeyer, raises significant questions about corporate governance and financial transparency within the company. As the legal battle unfolds, it may have far-reaching consequences for Gala Games, its investors, and the broader Web3 gaming community. The crypto world will undoubtedly closely monitor the developments and outcomes of these lawsuits.

$GALA

The crypto market has been an unpredictable journey for investors, and GALA, the native cryptocurrency of Gala Games, is no exception. In this blog post, we'll explore the dramatic price drop that GALA has experienced amidst a turbulent and prolonged crypto market slowdown. We'll also delve into the internal disputes between Gala Games' top executives and their impact on the token's value.

GALA Token's Price Plunge: A Harrowing 98% Loss

In the past 18 months, GALA has seen a staggering 98% decrease in its price. We'll examine the factors contributing to this sharp decline, including macroeconomic forces and market selloffs.

Internal Strife at Gala Games

The rift between Gala Games' top executives, Eric Schiermeyer and Wright Thurston, has made headlines. We'll uncover the allegations of misappropriation of funds and their impact on GALA's price.

Lawsuits and Accusations

Get a detailed insight into the lawsuits filed by Schiermeyer and Thurston against each other. Thurston's accusation of Schiermeyer "burning off" $600 million raises questions about the company's financial health.

GALA's Precarious Position

As the internal disputes came to light, GALA's price took a further hit, approaching its all-time low. We'll discuss the token's current price and its historical highs.

Investors' Dilemma

During bear markets, investors often accumulate tokens, but the internal strife within Gala Games has made GALA less appealing. We'll explore how the lack of trust and transparency affects prospective investors.

Trading Activity Amidst the Chaos

Despite the price drop, GALA has witnessed increased trade volume, with a 148% uptick in a 24-hour period. We'll analyze the implications of this trading activity on the token's market dynamics.

Market Cap and Beyond

We'll wrap up by examining GALA's current market cap and what the future may hold for this utility token in the wake of its tumultuous journey.

In Summary

The GALA token's rollercoaster ride in the crypto market, coupled with the internal disputes at Gala Games, has created an uncertain landscape for investors. While some may see opportunities in the token's recent trading activity, the allegations of mismanagement and lack of trust raise significant concerns about its long-term viability. As the crypto market continues to evolve, GALA's fate remains uncertain, and investors must tread carefully in this turbulent terrain.

#GALA #GalaGames $GALA