21 May

The CEO of Gala Games attributed a recent smart contract "security incident," resulting in the theft and sale of $23 million worth of GALA tokens, to internal control failures within the company.

On May 20 at 7:32 pm UTC, reports indicated that a wallet had minted 5 billion GALA tokens, valued at least $200 million at the time. However, the tokens were being sold off in batches by the wallet.

Following news of the compromise, GALA experienced a 20% drop from its daily high to a 24-hour low of $0.038, although it has since recovered slightly to $0.041, according to CoinGecko.

In a statement on May 20, Gala Games CEO Eric Schiermeyer acknowledged the unauthorized sale of 600 million GALA tokens and the subsequent burning of 4.4 billion tokens, attributing the incident to internal control lapses. Schiermeyer assured that Gala Games had identified the breach, secured the Ethereum contract, and removed unauthorized access to the GALA contract.

Gala Games believes it has identified the individual responsible and is collaborating with law enforcement agencies, including the FBI and the United States Justice Department, as well as international authorities.

Although Gala Games did not disclose the perpetrator's identity or how they gained access to the GALA contract, they announced that the affected wallet has been frozen to contain the security incident.

Despite requests for comment, Gala Games did not respond.
This incident follows a series of legal disputes between Schiermeyer and Gala Games co-founder Wright Thurston, involving allegations of financial mismanagement and theft within the company.

May 2024, Cryptoniteuae

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