Gala Games CEO Admits to Lax Controls Leading to $23M GALA Token Breach
Summary:
Gala Games CEO Eric Schiermeyer has recognized that weak internal controls led to a security breach, resulting in a cybercriminal stealing and selling $23 million of the company's GALA token. Gala Games reported that the issue has been fixed and unauthorized access to the GALA contract has been cut off, while revealing that it is collaborating with various domestic and international authorities to investigate the theft. Schiermeyer, however, refrained from providing any details regarding the identity or method of intrusion of the perpetrator.
The chief executive of Gala Games recognizes that lax internal checks led to the recent smart contract security mishap, where a cybercriminal successfully lifted and managed to market $23 million in the company's GALA token. On May 20, Blockchain experts noted that 5 billion GALA, valued at approximately $200 million when minted, were created. The wallet involved then sold the tokens off in groups. In the wake of the breach reports, GALA plunged to a 24-hour low of $0.038, marking a 20% decline in under an hour. The slight resurgence to $0.041 has since been recorded on CoinGecko.
According to Eric Schiermeyer, Gala Games' co-founder and CEO, a mishap led to an unwarranted sale of 600 million GALA tokens and effectively burnt 4.4 billion tokens. Schiermeyer acknowledged the company's slip-up in its internal checks, vowing to rectify the issue to prevent a recurrence.
Schiermeyer reports that Gala has pinpointed the breach and has successfully terminated unauthorized access to the GALA contract. The company reassures that its Ethereum contract, which was not violated, remains secured. Gala claims to have singled out the accomplice and is, as Schiermeyer states, liaising with the FBI, the US Justice Department, and a host of international authorities.
Following the incident, Gala Games updated that the security event that impacted the GALA token had been addressed and the affected wallet had been immobilized. Neither Gala nor Schiermeyer have disclosed the identity of the perpetrator or their method of access into the GALA contract. Gala Games has yet to provide a comment on the matter.
In related news from August, co-founders Schiermeyer and Wright Thurston engaged in legal warfare, each filing suits against the other on behalf of Gala Games. Thurston cast allegations at Schiermeyer for leading Gala to squander millions of dollars in company assets, to which Schiermeyer countered with claims of Thurston pilfering $130 million worth of GALA.
Published At
5/21/2024 9:17:14 AM
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