The CEO of Gala Games admitted that a recent “security incident” involving a smart contract was due to internal control issues, resulting in a hacker stealing and selling $23 million worth of GALA tokens. On May 20th, it was reported that 5 billion GALA tokens, valued at $200 million, were minted and sold in batches by an unauthorized wallet. As a result, GALA’s price dropped by 20% but has since recovered slightly. Gala Games co-founder and CEO, Eric Schiermeyer, acknowledged the mistake and stated that measures are being taken to prevent similar incidents in the future.
Schiermeyer confirmed that Gala Games discovered the compromise and took immediate action to remove unauthorized access to the GALA contract. He assured that the Ethereum contract remained secure and unaffected. Gala Games believes they have identified the person responsible and are working with law enforcement agencies, including the Federal Bureau of Investigation and the United States Justice Department, as well as international authorities.
Despite the incident, Gala Games did not disclose the identity of the individual responsible or how they gained access to the GALA contract. They have not responded to requests for comment. It is worth noting that Gala Games has been embroiled in legal disputes between its co-founders, Schiermeyer and Wright Thurston, with allegations of financial misconduct and theft of GALA tokens. These lawsuits were filed in August.
In conclusion, Gala Games’ CEO acknowledged the internal control issues that led to the security incident, resulting in the theft and sale of millions of dollars’ worth of GALA tokens. They have taken steps to address the problem and are working with law enforcement agencies to hold the responsible party accountable.