Web3 gaming company Gala Games appears to have been attacked on Monday, with someone mining $5 billion. festival
-0.66%
About $206 million worth of tokens, according to Blockchain Explorer Etherscan.
Following the incident, GALA, the platform’s native token, plummeted nearly 15% from $0.0467 at 3:00 PM (19:00 UTC) on May 20 to $0.0397 at 5:25 PM (21:25 UTC) on May 20. Data from The Block’s token price page.
Overall, the token price has fallen 5.77% over the past day. GALA maintains a market cap of $1.7 billion with a circulating supply of 40.6 billion.
GALA price performance. Image: Block Price
The situation is developing and The Block has reached out to Gala Games for comment.
Previous Gala Games exploits
In early 2021, Gala Games suffered a loss of $130 million after approximately 8.65 billion GALA tokens were stolen. Eric Schiermeyer, one of the company’s co-founders, sued another co-founder, Wright Thurston, for allegedly participating in the hack.
“When confronted about the theft of the GALA company, Thurston falsely stated that he intended to store GALA in a secure wallet for the benefit of Gala Games.” According to the August 2023 lawsuit. “But last year, Thurston and/or (his company) began moving stolen tokens from those wallets and exchanging or selling them in a complex web of obfuscated transactions. Or he could have sold the pre-Gala Games GALA tokens to stop him.” Schiermeyer added to other parts of the complaint that Thurston “enriched himself through his own business.”
A pattern of fraud.”
Thurston then filed his own lawsuit against Schiermeyer, claiming he used company funds for personal use, The Block previously reported.
The U.S. Securities and Exchange Commission (SEC) also sued Thurston and another company in March 2023 for allegedly selling $18 million worth of unregistered securities in the form of GREEN, a cryptocurrency linked to a public global distributed power grid.
As a co-founder of the company, Schiermeyer also co-founded mobile gaming company Zynga. Gala Games’ third co-founder, Michael McCarthy, previously served as creative director at Zynga.
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