Home Blockchain Gala Games CEO Blames Internal Controls for $23 Million GALA Token Hack: Market Turmoil Ensues

Gala Games CEO Blames Internal Controls for $23 Million GALA Token Hack: Market Turmoil Ensues

GALA Token Hack

Gala Games, a prominent player in the blockchain gaming space, finds itself embroiled in a $23 million GALA token hack. CEO Eric Schiermeyer attributes the breach to “messed up” internal controls, sending shockwaves through the cryptocurrency market and sparking widespread concerns over security and investor confidence.

The Breach: Unraveling the Timeline

On May 20 at 7:32 pm UTC, blockchain analysts sounded the alarm as 5 billion GALA tokens, valued at a staggering $200 million, were mysteriously minted. To the horror of Gala Games and its stakeholders, the responsible wallet promptly offloaded these tokens in batches, triggering panic-selling and plunging GALA’s price by 20%.

CEO’s Admission: Internal Control Failures

In a candid admission, Gala Games co-founder and CEO Eric Schiermeyer acknowledged the gravity of the situation, attributing the breach to internal control failures. “We messed up our internal controls,” Schiermeyer conceded in a May 20 post on X (formerly Twitter), as he sought to reassure stakeholders and restore faith in Gala’s security measures.

While affirming the security of the Ethereum contract and assuring users that it “was never compromised,” Schiermeyer outlined Gala’s swift response to the breach, including the identification and removal of unauthorized access to the GALA contract.

Collaborative Efforts and Ongoing Investigations

In a bid to apprehend the perpetrator and seek justice, Gala Games has embarked on a collaborative effort with law enforcement agencies, including the FBI, the U.S. Justice Department, and international authorities. Schiermeyer expressed confidence in Gala’s ability to identify the individual responsible for the breach, signaling a commitment to holding them accountable for their actions.

Despite the assurances provided by Gala Games, questions linger over the identity of the hacker and the method used to exploit Gala’s internal controls. Gala Games remained tight-lipped on the specifics of the breach, leaving stakeholders clamoring for answers and seeking reassurance amidst the uncertainty.

Legal Turmoil: Schiermeyer vs. Thurston

In a twist of fate, the GALA token hack is not the only source of contention within Gala Games’ ranks. In a related development from August, CEO Eric Schiermeyer and fellow co-founder Wright Thurston found themselves embroiled in legal battles, with accusations flying in both directions.

Thurston accused Schiermeyer of mismanagement, alleging that he caused Gala to “sell off and waste millions of dollars in company assets.” Conversely, Schiermeyer fired back, claiming that Thurston pilfered $130 million worth of GALA tokens—a startling revelation that adds another layer of complexity to Gala Games’ already tumultuous journey.

Conclusion: Navigating Uncertainty in the Wake of the GALA Token Hack

As Gala Games grapples with the aftermath of the $23 million GALA token hack, stakeholders are left to navigate a landscape fraught with uncertainty and volatility. While CEO Eric Schiermeyer’s admission of internal control failures is a step towards transparency, the road ahead remains fraught with challenges as Gala Games seeks to rebuild trust, strengthen its security infrastructure, and emerge stronger from this ordeal.

In the face of adversity, Gala Games must remain vigilant, proactive, and transparent in its efforts to safeguard investor interests and uphold the integrity of the GALA token ecosystem. Only time will tell whether Gala Games can weather the storm and emerge as a beacon of resilience in the fast-paced world of blockchain gaming and cryptocurrency.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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