Crypto News – Co-founder Wright Thurston and CEO Eric Schiermeyer of Gala Games have both filed lawsuits against each other.
Gala CEO and Co-Founder File Lawsuit Against Each Other, Token Price Drops More Than 8%
Eric Schiermeyer, the CEO of Gala Games, and Wright Thurston, the company’s co-founder, each filed a complaint against the other in a Utah District Court on August 31 for alleged theft. Thurston was charged with collecting and selling GALA tokens worth $130 million illegally by Schiermeyer. Thurston charged Schiermeyer with mismanaging millions of dollars worth of company resources and committing fraud that hurt the business.
According to Schiermeyer, GALA tokens associated with the Gala Games ecosystem were stolen by Thurston and his investment company, True North United Investments, for a total of almost $130 million. Schiermeyer claimed that although Thurston had first kept these tokens safely, they had inexplicably been transferred to 43 different wallets. As soon as he was accused of carrying out a number of murky transactions between September 2022 and May 2023, Thurston’s defense quickly collapsed.
Thurston Allegedly Stole Node Licenses
Thurston was also accused of stealing the licenses needed to run Gala ecosystem nodes, selling them for profit, and keeping the money. At the same time, Schiermeyer was sued by Thurston’s True North on the grounds that he mismanaged Gala’s resources and used millions of dollars improperly. In order to effectively exclude Thurston from Gala’s decision-making processes, the lawsuit asserts that Schiermeyer established Gala corporations in Switzerland and Dubai.
Thurston is being sued by Schiermeyer for damages, including the restitution of GALA tokens that were taken, as well as for his dismissal as Gala director. Contrarily, Thurston is requesting Schiermeyer’s dismissal as well as $750 million in damages. These allegations were further complicated when the United States Securities and Exchange Commission (SEC) sued Thurston in connection with an earlier legal dispute. Gala Games’ reputation has been tarnished by True North’s alleged involvement in an unlicensed crypto-mining scheme.
Token Price Affected by Lawsuits
The community has expressed its extreme anger in reaction to these cases. The internal conflict discourages backers and investors. Some have expressed concern about how the continuing legal disputes are eroding trust in the Gala platform. Concerns about the potential detrimental effects of the ongoing FUD on the Gala Games are growing as the internal legal dispute over the Gala Games gets more intense.
In the last 24 hours, the price of GALA tokens has fallen by 2.05% as a result of this upheaval. Currently, according to CoinMarketCap data, it is $0.01596. However, this continued unrest had a favorable effect on GALA’s competitors, such as PYR, MYRIA, and NAKA. Over the past day, each of these has experienced double-digit percentage rises.
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