Gala Games’ CEO has admitted that internal controls were to blame for a recent security breach that resulted in a hacker stealing and selling $23 million worth of GALA tokens. On May 20, it was reported that 5 billion GALA tokens, valued at $200 million, were minted and then sold in batches by an unauthorized wallet. This incident caused GALA’s price to drop by 20% within 24 hours. Gala Games co-founder and CEO, Eric Schiermeyer, acknowledged the mistake in a public post and assured that steps were being taken to prevent similar incidents in the future.
Schiermeyer stated that Gala Games had successfully identified and removed unauthorized access to the GALA contract. He emphasized that the Ethereum contract itself was secure and had not been compromised. Gala Games has been cooperating with the Federal Bureau of Investigation, the United States Justice Department, and international authorities to locate the individual responsible for the breach.
Although Gala Games has contained the security incident and frozen the impacted wallet, the company has not disclosed the identity of the perpetrator or the method by which they gained access to the GALA contract. Gala Games has not provided further comments on the matter.
In a separate development, Schiermeyer and Gala Games co-founder Wright Thurston have filed lawsuits against each other, accusing one another of financial misconduct. Thurston alleges that Schiermeyer mismanaged company assets, while Schiermeyer claims that Thurston stole $130 million worth of GALA tokens.
Overall, Gala Games is working diligently to address the security breach and strengthen its internal controls to prevent future incidents.