CDS Crypto News Gala Games CEO Blames Internal Controls for $23M GALA Token Theft
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Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

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Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

Gala Games’ CEO Eric Schiermeyer has attributed a recent security breach that led to the theft and sale of $23 million worth of GALA tokens to inadequate internal controls.

On May 20 at 7:32 pm UTC, blockchain analysts detected the minting of 5 billion GALA tokens, valued at approximately $200 million at the time. The responsible wallet began selling the tokens in batches, triggering concerns.

The breach caused GALA’s price to plummet to a 24-hour low of $0.038, a 20% decrease from its daily high just an hour earlier. The price has since rebounded slightly to $0.041, according to CoinGecko.

In a statement on May 20, Schiermeyer acknowledged the incident, which led to the unauthorized sale of 600 million GALA tokens and the effective burn of 4.4 billion tokens. “We messed up our internal controls,” Schiermeyer admitted. “This shouldn’t have happened, and we are taking steps to ensure it doesn’t happen again.”

Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

Schiermeyer assured that Gala Games had identified the compromise and revoked unauthorized access to the GALA contract. He emphasized that the Ethereum contract remains secure and was never compromised.

Gala Games has identified the individual responsible and is collaborating with the FBI, the United States Justice Department, and international authorities, Schiermeyer revealed. The specific details regarding the perpetrator or the method of access were not disclosed.

Gala Games confirmed in an X post that the security incident involving the GALA token has been contained and the affected wallet frozen.

Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

This incident comes amid ongoing legal disputes between Schiermeyer and fellow co-founder Wright Thurston. In August, both filed lawsuits against each other, with Thurston alleging Schiermeyer caused the company to squander millions, while Schiermeyer accused Thurston of stealing $130 million worth of GALA tokens.

Gala Games did not respond to requests for further comment.

FAQs

What is Gala Games?

Gala Games is a blockchain-based gaming platform that aims to revolutionize the gaming industry by giving players true ownership of in-game assets and a voice in the platform’s development. It utilizes blockchain technology to create a decentralized ecosystem where players can earn, trade, and own unique in-game items as NFTs (non-fungible tokens).

How is Gala Games different from traditional games?

True Ownership: Players truly own their in-game items, characters, and other assets as NFTs. These items can be traded on marketplaces, sold, or even used in other games within the Gala ecosystem.

Play-to-Earn: Gala Games offers “play-to-earn” mechanics, where players are rewarded with GALA tokens or NFTs for their in-game accomplishments and contributions.

Decentralized Governance: Gala node operators participate in decision-making regarding the platform’s future, giving players a voice in shaping the direction of Gala Games.

Gala Games CEO Blames Internal Controls for $23M GALA Token Theft

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