In its May 20 report, the Gala Games suffered a multimillion exploit. The Gala Games lamented that a lousy actor minted 5 billion of its native token Gala valued around $240 million. The exploit interfered with the Gala’s market performance, impacting huge losses.
According to CoinGecko, the GALA token dropped by 20% to reach the $0.038 support level within the last 24 hours. After the sudden drop, GALA established a significant recovery, reaching $0.041.
Hackers Drain $240 Million GALA Tokens
The incident grabbed the attention of a renowned blockchain analytic firm to probe the matter. The Gala team noted that after draining the 5 billion GALA tokens, the attackers managed to sell 600 million coins valued at $29 million through Uniswap.
On X, a pseudonymous security analyst, oxQuit, revealed that the Gala Games admin account minted 5 billion of GALA and has been actively selling stolen assets for the past 2 hours.
In a subsequent tweet, the chief executive of Gala, Eric “Benefactor” Schiermeyer, updated the community concerning the exploit and the damage caused by the multimillion attack. The Gala Games CEO has been a critical contributor to the gaming sector. Apart from leading the Gala Games, Schiermeyer is the co-founder of the renowned mobile game Zynga.
The executive confirmed that the Gala technical team managed to identify the system vulnerability and took the shortest to address the matter. The Gala team blocked the unauthorized access to the GALA smart contract.
Gala Game Suffers an Exploit
The recently completed system maintenance ensured that the ETH contract for GALA was safe and secure. Schiermeyer confirmed that the Gala team integrates a multi-sig wallet to prevent criminals from compromising the contract.
He admitted that the criminals compromised the Gala Game platform despite the security measures. Upon contacting Gala Games to enquire more about the ongoing investigation, the company claimed to freeze the crypto account under investigation.
Over $4.4 billion worth of crypto assets have yet to be sold, and the Gala Games seek to recover these funds. The proposed recovery plans involved freezing all the accounts used by the criminals.
Gala Games Identifies the Perpetrator
The Gala team stated that the changes in the market forced the Gala team to increase the supply of GALA tokens by $50 million. The executive blamed the Gala for failing to embrace adequate internal control measures.
He never expected the exploit to occur but assured the Gala team that the mistake would never occur again. The CEO confessed that the Gala team had discovered the suspect and would liaise with the Federal Bureau of Investigation (FBI) and Department of Justice (DOJ) to bring down the perpetrator.
Commenting on this, some X users described Gala as being exploited as an isolated incident. The exploit came months after the Gala Games’ top executives engaged in misunderstanding.
In August 2023, Schiermeyer filed a lawsuit against Gala co-founder Wright Thurston for stealing $130 million worth of Gala tokens. Thurston claimed that Schiermeyer misused the company assets in retaliation to this allegation.
He blamed Schiermeyer for failing to consult the Gala community when making critical business decisions. In March, the US Securities and Exchange Commission (SEC) filed a lawsuit against Thurston and his other companies for selling unregistered securities.
The SEC claimed that Thurston sold unregistered securities similar to the GREEN crypto assets.
