Gala Games Recovers $22 Million Worth of Ether Following Security Incident

٢٢ مايو ٢٠٢٤ BACK TO NEWS

Blockchain gaming platform Gala Games has successfully retrieved approximately $22 million worth of Ether (ETH) from the individual responsible for a recent security breach.

The incident, which unfolded on May 20, saw an attacker mint Gala (GALA) tokens worth $200 million, a portion of which was sold before Gala Games froze the wallet associated with the attack.

In a swift response, Gala Games, credited their effective action and collaboration with federal law enforcement agencies for the recovery of 5913.2 ETH, equivalent to $22.3 million, from the attacker's wallet.

Utilizing GalaChain's blocklist protocol feature, Gala Games managed to freeze 4.4 billion GALA tokens out of the 5 billion minted within just 45 minutes, significantly mitigating the impact of the security breach.

To address the aftermath of the incident, Gala Games plans to repurchase the equivalent GALA tokens using the returned ETH and then burn them, ensuring the security of the Gala ecosystem.

A governance vote has been initiated to decide whether the blocklisted 4.4 billion GALA tokens will be considered "burned," effectively removing them from circulation.

In parallel developments, technology firm DWF Labs disclosed its purchase of 28 million GALA tokens from the open market, aiming to stabilize the token's value and safeguard investments within the community.

Despite the security breach and subsequent recovery efforts, Gala Games co-founders, Eric Schiermeyer and Wright Thurston, have filed lawsuits against each other, accusing misconduct and misappropriation of company assets valued at millions of dollars.

Schiermeyer alleges that Thurston, along with his investment entity True North United, unlawfully acquired $130 million worth of GALA tokens, engaging in deceptive transactions.

In a counterclaim, Thurston accuses Schiermeyer of mismanaging Blockchain Game Partners, the registered name for Gala Games, alleging the squandering of $600 million of company assets.

Both co-founders seek to remove each other from their positions as directors of the company, amid ongoing legal battles.