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Gala Games Recovers $22 Million in Ether
Blockchain gaming platform Gala Games successfully retrieved approximately $22 million worth of Ether (ETH) following a recent security incident. The incident, which took place on May 20, involved an attacker minting Gala (GALA) tokens valued at $200 million and selling a portion before the wallet was frozen.
Swift Recovery and Response
Gala Games credited the swift recovery to their effective response and the involvement of federal law enforcement agencies. The attacker’s wallet returned 5913.2 ETH, equivalent to $22.3 million, to Gala Games.
GalaChain’s Blocklist Protocol
Gala Games utilized GalaChain’s blocklist protocol feature to freeze 4.4 billion GALA tokens out of the 5 billion minted within just 45 minutes. This proactive measure helped mitigate the impact of the security breach.
Repurchasing and Burning Tokens
Eric Schiermeyer, co-founder and CEO of Gala Games, announced plans to repurchase the equivalent GALA tokens using the returned ETH and then burn them. This approach aims to address the aftermath of the incident and enhance the security of the Gala ecosystem.
Governance Vote and Token Stabilization
Gala Games initiated a governance vote to decide whether the blocklisted 4.4 billion GALA tokens will be considered “burned,” effectively removing them from circulation. Meanwhile, DWF Labs purchased 28 million GALA tokens from the open market to stabilize the token’s value and safeguard investments.
Legal Disputes Among Founders
The co-founders of Gala Games, Eric Schiermeyer and Wright Thurston, have filed lawsuits against each other, alleging misconduct and misappropriation of company assets. The legal complaints involve accusations of unauthorized acquisition and deceptive transactions related to GALA tokens, as well as separate SEC lawsuits.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
