Gala Games recently recovered $22 million worth of Ether (ETH) from the individual responsible for a security incident that occurred on May 20. The attacker minted Gala (GALA) tokens worth $200 million and sold a portion of them before the wallet was frozen. Gala Games was able to freeze 4.4 billion GALA tokens out of the 5 billion minted within 45 minutes, thanks to GalaChain’s blocklist protocol feature. The quick response and involvement of federal law enforcement agencies facilitated the recovery process. The company credited its effective response for the successful retrieval of the stolen funds.
In response to the security incident, Gala Games intends to repurchase the equivalent GALA tokens using the returned ETH and then burn them. The team has initiated a governance vote to determine if the blocklisted 4.4 billion GALA tokens will be considered “burned,” effectively removing them from circulation. DWF Labs, a technology firm, has purchased 28 million GALA tokens from the open market to stabilize the token’s value and support investors and the community. GALA was trading at $0.0448 at the time of writing, reflecting a 6.64% increase over the past day.
The co-founders of Gala Games, Eric Schiermeyer and Wright Thurston, have filed lawsuits against each other, alleging misconduct and misappropriation of company assets valued at millions of dollars. Schiermeyer claims that Thurston and his investment entity True North United unlawfully acquired $130 million worth of GALA tokens and engaged in deceptive transactions involving the tokens. Thurston, in his counterclaim, accuses Schiermeyer of mismanaging the company and diverting company assets for personal use. Both co-founders seek to remove each other from their positions as directors of the company amidst legal disputes.
The identity and method employed by the attacker in the Gala Games security incident have not been publicly disclosed, though some community members suggest that a security contractor made a mistake by accessing the wallet without using a VPN. Gala Games’ quick response and use of GalaChain technology enabled the freezing of billions of GALA tokens, mitigating the impact of the breach. The company plans to safeguard the Gala ecosystem by repurchasing and burning the equivalent tokens using the returned ETH. The initiation of a governance vote to determine the fate of the blocklisted tokens demonstrates Gala Games’ commitment to addressing the aftermath of the incident and ensuring the security of its platform.
In parallel to the security incident recovery efforts, Gala Games faces internal conflicts as its co-founders sue each other over alleged misconduct and asset misappropriation. The lawsuits highlight the challenges faced by the company amidst legal disputes and the need to ensure accountability and transparency in its operations. As Gala Games works to resolve the legal issues surrounding its co-founders, the gaming platform continues to focus on enhancing security measures, engaging with the community, and stabilizing the value of its token. The recovery of stolen funds, initiation of governance votes, and purchase of GALA tokens from the open market reflect Gala Games’ proactive approach to addressing challenges and maintaining trust and integrity within its ecosystem.
