Gala Games Loses IDR 3.1 Trillion Due to Massive Exploitation!

Bittime - Gala Games, a web3 gaming company, suffered a massive exploit on Monday, May 20, 2024. As a result, Gala suffered a loss of $ 206 million (around Rp3.1 trillion) in the form of GALA tokens which were minted on a large scale by a mysterious figure who exploited Gala.

The incident immediately had a negative impact on the price of the Gala token, which slumped nearly 15% from $0.0467 (Rp675) at 15:00 ET (19:00 UTC) to $0.0397 (Rp573) at 17:25 ET (21:25 UTC) on May 20.

Impact on GALA Price

Overall, the price of the GALA token fell 5.77% in the past day. Currently, GALA has a market capitalization of $1.7 billion (around Rp24.7 trillion) with a circulating supply of 40.6 billion tokens.

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Flashback to the Gala Case in 2021

At the beginning of 2021, Gala Games lost $130 million (approximately IDR 1.89 trillion) after around 8.65 billion GALA tokens were stolen. Eric Schiermeyer, one of the company's founders, sued Wright Thurston, his co-founder, alleging involvement in the hack.

"In the face of the company's GALA token theft allegations, Thurston falsely stated that he only intended to store GALA tokens in a secure wallet for the benefit of Gala Games," according to the lawsuit in August 2023.

"However, last year Thurston and/or his company began removing stolen tokens from those wallets and exchanging them or selling them in a complex and hidden network of transactions. He managed to exchange, hide, or sell around $130 million (around Rp1.89 trillion) worth of stolen GALA tokens before Gala Games could stop it." Schiermeyer also added that Thurston "enriched himself through this pattern of deception."

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Thurston Counterclaims

Thurston later filed a countersuit against Schiermeyer claiming that he used company funds for personal use, according to a previous report by The Block.

In addition, the United States Securities and Exchange Commission (SEC) also sued Thurston and one of his companies in March 2023 alleging that they sold $18 million worth of unregistered securities in the form of GREEN, a cryptocurrency linked to a global decentralized power network.

Gala Games' Efforts to Address Exploitation

Eric Schiermeyer, co-founder of Gala Games, is also the co-founder of mobile game company Zynga. Gala Games also has a third founder, Michael McCarthy, who previously served as creative director at Zynga.

This latest incident adds to the burden for Gala Games which is already struggling to maintain its reputation amid increasingly stringent regulatory and security challenges in the crypto industry.

Conclusion

With this exploitation incident, Gala Games must immediately take steps to strengthen their security system and restore investor confidence. Despite the enormous challenges faced, Gala Games still has a chance to rise and prove their strength and innovation in the ever-growing web3 gaming industry.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is IDR 10,000. After that, then you can make a crypto asset purchase in the application.

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Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.