On twenty first Might, Gala Video games’ sensible contract was exploited with the unauthorized minting of 5 billion GALA tokens, price $240 million. The attacker then managed to trade $21 million price of tokens to ETH through Uniswap earlier than the remaining tokens had been frozen and burned.
Inside hours of the hack, Gala CEO Eric Schiermeyer, aka Benefactor, acknowledged the incident, admitting, “We identified the compromise and within 45 minutes we secured and removed unauthorized access to the GALA contract. We messed up our internal controls… This shouldn’t have happened.”
In an sudden flip of occasions, on twenty second Might, the attacker returned the ETH. The corporate introduced it could probably convert the returned ETH again to GALA tokens. Schiermeyer later confirmed on Gala’s Discord server that “We will probably buy and burn on galaswap.”
This wouldn’t be the primary time GALA tokens are unexpectedly burned. In 2023, Gala was surrounded by controversy after asserting it could fork its GALA token and reissue it as GALA v2, adopted by burning 42% of those new tokens. The corporate claimed this was to mitigate the “fundamental risk to the overall tokenomics of the project.” Whereas the reason appeared considerably believable, the token burn nonetheless raised questions on the time.
It was later revealed that Gala’s two co-founders, Eric Schiermeyer and Wright Thurston, had filed lawsuits in opposition to one another involving tons of of thousands and thousands of {dollars}. Schiermeyer accused Thurston of stealing and promoting no less than $130 million price of GALA tokens, prompting the GALA token fork and burn to render the allegedly stolen tokens nugatory.
In Thurston’s counter-suit, he alleged that Schiermeyer enriched himself on the expense of Gala Video games as an organization and Thurston as a co-owner, referring to Schiermeyer’s management over numerous belongings.
In response to the current hack, web3 investor DWF Labs demonstrated its help for Gala Video games by buying 28 million GALA tokens to “alleviate market promoting pressures“.
It’s price noting that DWF Labs was not too long ago within the information with Binance’s surveillance crew claiming it had manipulated the value of YGG tokens and no less than six different tokens, processing over $300 million in wash trades throughout 2023.
Regardless of its rapid plunge following the exploit, because of the return of funds and DWF Labs’ funding, GALA has since recovered and its worth has elevated by 19% within the final 7 days.
