Gala Games Recovers $22M Following Security Breach; DWF Labs Buys 28M Tokens to Stabilize Value
Summary:
Gala Games received around $22 million in Ether (ETH) following a recent security breach which saw $200 million in Gala (GALA) tokens being minted. The company effectively froze the fraudulent transactions, and federal law enforcement agencies have become involved. CEO Eric Schiermeyer suggests repurchasing and burning equivalent GALA tokens with the returned ETH, a proposal under discussion in a governance vote. Concurrently, DWF Labs bought 28 million GALA tokens to stabilize the token's value.
In a remarkable turn of events, Gala Games has been reimbursed approximately $22 million worth of Ether (ETH) from an individual behind a "security breach" that happened on May 20. This breach saw $200 million in Gala (GALA) tokens created and a small portion traded prior to freezing the wallet responsible.
On May 21, the offender's wallet returned 5913.2 ETH, estimated to be $22.3 million, mirroring almost exactly the market worth of the 600 million GALA traded the day before. Gala revealed in a blog post on May 21 that this refund in ETH was precipitated by the team's immediate, robust course of action and the engagement of federal law enforcement agencies.
Gala's innovative 'GalaChain's blocklist protocol' feature was utilized to effectively freeze 4.4 billion out of the 5 billion GALA Minted in under 45 minutes. Eric Schiermeyer, Gala Games' CEO and co-founder, disclosed in a May 20 X and Discord post that the suspected perpetrator had been tracked down, including finding his residence.
The identity or technique used for the breach has yet to be officially announced by Gala Games, but allegations from community members suggest the assailant may have been a security contractor who made a mistake connecting to the wallet without a VPN.
In a Discord post, Schiermeyer proposed using the returned ETH to repurchase and burn equal GALA tokens. "It seems to be the only logical use of the ETH," Schiermeyer said, suggesting a buy and burn approach on GALAswap.
The company's blog post implies that a governance vote is underway to determine if the 4.4 billion blocked GALA should be "treated as burnt." Despite the developments, DWF Labs announced a purchase of 28 million GALA tokens on the open market to "hold the token’s value firm."
DWF Labs stated, "Ensuring the security of our investments and their respective communities is vital to us." GALA has seen a modest rise of 0.4% in 24 hours to $0.043 and a weekly rise of 9.3% as reported by CoinGecko.
Published At
5/22/2024 4:05:42 AM
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