Jake Browatzke, a YouTube creator who specializes in making blockchain game videos, recently broke the news in the community that the two founders of the blockchain game platform Gala Games filed lawsuits against each other. Both parties accused the other of severely damaging the company's reputation and reputation. interests, hoping to correct the other party's behavior and safeguard the company's interests through judicial channels. As soon as the incident broke out, the price of GALA tokens continued to fall, falling by about 70% this year.
BREAKING: Gala Games, one of the largest ecosystems in the web3 gaming industry, is facing internal strife as two of its co-founders have filed lawsuits against each other.
— Jake Browatzke (@jakebrowatzke) September 2, 2023
The dispute between the founders of Gala Games, who is endangering the interests of the company?
The two founders of Gala Games are Eric Schiermeyer and Write Thurston. It was established in 2019. Eric Schiermeyer is also the co-founder of the well-known game company Zynga.
In the complaint filed by Eric Schiermeyer, he made the following key allegations against Write Thurston and its investment entity, True North:
In early 2021, Thurston or True North stole cryptocurrency from Gala Games, totaling 8,645,014,077 GALA tokens (currently worth approximately $145 million). GALA is the core utility token of the Gala Games ecosystem.
When asked about this, Thurston claimed that he planned to store GALA in secure wallets for the sake of the platform. However, last year, Thurston or True North began to transfer stolen GALA from these wallets and through a complex transaction network. Exchange or sell it. He successfully redeemed, hid or sold approximately $130 million worth of GALA before Gala Games was able to stop him.
Thurston also stole the company's authorization to operate "nodes" in the Gala ecosystem, and can earn GALA tokens by running nodes. Thurston sold licenses to these stolen nodes to others while keeping the proceeds from the sales for himself or True North.
Thurston and True North have been sued for fraud by the people who purchased the stolen licenses.
The SEC also filed a lawsuit against Thurston and True North earlier this year, accusing Thurston of defrauding purchasers of "Green Boxes" into using them for energy-saving GREEN token mining, and making other fraudulent descriptions.
Thurston, an incompetent director, had stolen more than 10 times as much as the plaintiff from the company.
For the above incident, the defendants are required to return or compensate valuable cryptocurrency, and seek compensation for the losses caused by Thurston to Gala Games, as well as his removal from the director position of Gala Games.
Ironically, Thurston, who was a defendant in the previous case, also filed a lawsuit against Schiermeyer, alleging that he did the following without the approval of the board of directors:
Caused BGP to sell and waste millions of dollars in company assets, including "destroying" approximately $600 million in GALA and shareholder assets.
Loaned millions of dollars in BGP funds for Schiermeyer's personal benefit.
Schiermeyer established companies in Switzerland and Dubai to capture business opportunities that were BGP's (and put himself in the position of controlling shareholder).
BGP operated with material deficiencies in its financial controls and provided incomplete or incorrect information to Thurston.
Refusal to provide company records to Thurston despite repeated requests.
Systemic, deliberate and deceptive conduct detrimental to BGP and its shareholders.
Note: The full name of BGP is Blockchain Game Partners. It is a company co-founded by Eric Schiermeyer and Write Thurston. It conducts business under the name of Gala Games.
Thurston said Schiermeyer's wrongful conduct and poor management had caused hundreds of millions of dollars in damage to BGP's reputation and the company's shareholder assets, and hoped that the lawsuit would improve Schiermeyer's behavior.
Gala officially announced its future plans, but it still cannot drive up prices.
Gala Games officially did not respond to the lawsuit between the founders. Instead, it announced the current progress and future development plans of each of its platforms today, seeming to want to settle the matter.
Gala Games stated on Twitter (now Achieve complete self-service for external teams.
We are getting a lot of inbound questions about exactly what $GALA is up to right now.
Gala Tech: – We have our own fully operational L1 Blockchain running multiple games – Rep, the social media platform built on #GalaChain, has entered into the QA phase of its migration…
— Gala Games (@GoGalaGames) September 3, 2023
However, this news cannot drive the sluggish price of GALA. According to data from CoinMarketCap, the price has fallen by 15% in the past week, and has fallen by 70% from its high point in the past year. The currency price can be said to be all the way down.
This article contains currency theft, fraud and malicious destruction! The two founders of Gala Games complained to each other that GALA fell by 70% in one year. This first appeared on Chain News ABMedia.