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Blockchain gaming platform Gala Games has experienced a significant security breach, resulting in the loss of over 4 billion GALA tokens.
Gala Games, a blockchain gaming startup co-founded by Eric Schiermeyer of Zynga fame, encountered a multi-million dollar security incident involving GALA tokens on May 21.
The firm announced that the security breach has been contained and the affected wallet has been frozen. This incident was isolated, and the cause has been addressed. The company is collaborating closely with law enforcement to investigate those responsible for the breach.
This was an isolated incident, the cause of which has been addressed and we are working closely with law enforcement to investigate the individuals behind the breach.
According to the announcement, the impacted wallet has been frozen, though the root cause of the breach remains unclear.
In another statement on May 21, Gala Games CEO Eric Schiermeyer disclosed that an unknown individual minted 5 billion GALA tokens worth $200 million on May 20 and managed to sell approximately 600 million GALA tokens. Schiermeyer assured users that the Gala Games team secured and removed unauthorized access to the GALA contract within 45 minutes.
We messed up our internal controls…This shouldn’t have happened and we are taking steps to ensure it doesn’t ever again. There is the issue of our daily distribution…we will be having a node vote on how to handle this issue. As usual, the community will decide how we proceed.
Following the news, the GALA token’s price dropped sharply to $0.037, losing nearly 20%, before rebounding to $0.042.
Founded in 2018 by Eric Schiermeyer, Wright Thurston, and Michael McCarthy, Gala Games is a blockchain-based gaming platform that aims to give control back to the players. The company has raised a total of $5 million in funding, primarily from investors including Block Wolves, Broslyn Capital, CaptureAlpha, DWF Labs, and Ignite Group.
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