Gala Games Faces $23 Million Token Exploit Due to Internal Control Issues

Gala Games Security Breach

Gala Games, a leading blockchain gaming platform, faced a major security breach resulting in the unauthorized sale of 600 million GALA tokens, valued at $23 million. CEO Eric Schiermeyer attributed the incident to inadequate internal controls.

Exploit Details

• The exploit occurred on May 20 at 7:32 pm UTC when a hacker accessed a Gala Games admin address.
• The attacker minted 5 billion new GALA tokens worth approximately $200 million and sold 600 million of these on Uniswap.

Immediate Response

In response, Gala Games froze the compromised wallet to prevent further sales and removed unauthorized access to the GALA contract. The company is collaborating with authorities to investigate the breach.

CEO Statement

CEO Schiermeyer acknowledged the breach, stating that steps are being taken to enhance internal controls and prevent future incidents.

Impact on GALA Token

Following the breach, GALA’s price dropped by 20% but has partially recovered to $0.041 according to CoinGecko.

Legal Battles and Commitment

Internal legal disputes and lawsuits between Gala Games executives add to the company’s challenges. However, Gala Games is committed to strengthening its security measures for the future.

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