Perpetrator of Security Breach Funds Gala Games with $22 Million in ETH

Gala Games, the blockchain gaming platform, has recovered around $22 million worth of Ether (ETH) from the person responsible for a recent security breach. The breach occurred on May 20 when the attacker created Gala (GALA) tokens worth $200 million and sold a small portion of them before the wallet was frozen. Gala Games received a return of 5913.2 ETH, equivalent to $22.3 million, from the attacker’s wallet on Tuesday. The company credited the swift recovery to their effective response and the involvement of federal law enforcement agencies. Gala Games used GalaChain’s blocklist protocol feature to freeze 4.4 billion GALA tokens out of the 5 billion minted within just 45 minutes, minimizing the impact of the breach. The company plans to repurchase the equivalent GALA tokens using the returned ETH and burn them to address the aftermath of the incident and ensure the security of the Gala ecosystem. Gala Games also announced a governance vote to decide whether the blocklisted 4.4 billion GALA tokens will be considered “burned,” effectively removing them from circulation. Meanwhile, DWF Labs, a technology firm, disclosed its purchase of 28 million GALA tokens from the open market to stabilize the token’s value. GALA is currently trading at $0.0448, reflecting a 6.64% increase in the past day. In other news, Gala Games co-founders Eric Schiermeyer and Wright Thurston have filed lawsuits against each other, accusing misconduct and misappropriation of company assets valued at millions of dollars. Schiermeyer claims that Thurston and his investment entity True North United unlawfully acquired $130 million worth of GALA tokens. Thurston, in turn, accuses Schiermeyer of mismanaging Blockchain Game Partners, the registered name for Gala Games, and squandering $600 million of company assets for personal use. Both co-founders are seeking to remove each other from their positions as directors of the company.