Gala Games Recovers $23M Stolen By Hacker, Plans Token Buyback Program
22 Maggio 2024 - 1:00AM
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In a recent security incident, Gala Games, a Web3 gaming company,
fell victim to an exploit that led to the unauthorized minting of 5
billion tokens, equivalent to approximately $214 million. The
hacker behind the breach subsequently sold 592 million GALA tokens,
amounting to $21.8 million in value, as blockchain analysis firm
Lookonchain confirmed. CEO Of Gala Games Takes Responsibility For
Breach Gala Games responded to the breach, assuring the community
via social media platform X (formerly Twitter) that the security
incident involving the GALA token had been contained and that the
affected wallet had been frozen. The company acknowledged the
isolated nature of the incident and stated that it had addressed
the cause while collaborating closely with law enforcement agencies
to investigate the individuals responsible for the breach. Related
Reading: Crypto Market Liquidations Top $330 Million In 24 Hours
With Ethereum In The Lead Eric Schiermeyer, CEO of Gala Games,
expressed his regret over the incident, referencing his previous
stance on projects experiencing hacks. Schiermeyer disclosed
that the breach led to the unauthorized sale of 600 million GALA
tokens, equivalent to $21 million, and the subsequent burning of
4.4 billion tokens. Within 45 minutes, Gala Games identified the
compromise and effectively secured and removed unauthorized access
to the GALA contract. Reassuring stakeholders, Schiermeyer
emphasized that the Ethereum (ETH) contract for GALA remained
secure and protected by a multi-signature (multi-sig) wallet, with
no compromise detected. Acknowledging internal control
shortcomings, Schiermeyer also admitted responsibility for the
incident and outlined the steps being taken to prevent its
recurrence. Gala Games expressed confidence in identifying the
culprit behind the breach. They confirmed active collaboration with
the Federal Bureau of Investigation (FBI), the Department of
Justice (DOJ), and a network of international authorities to ensure
appropriate legal actions are pursued. The incident raised concerns
regarding the project’s daily distribution, prompting Gala Games to
propose a node vote to address the issue. As per their
community-driven approach, the decision on how to proceed will be
determined by the community itself. DFW Labs Support In response to
the incident, DFW Labs, a Web3 investor and market maker, took
action to alleviate selling pressure in the market. They purchased
28 million GALA tokens from the open market to stabilize the value
of the token, which had fallen to $0.037 on Monday following the
exploit. However, with the investment from DFW Labs, the
token rebounded to its current trading price of $0.0431,
representing a loss of 7.8% in the last 24 hours. Related
Reading: Why Is The Ethereum Price Up 20% Today? Ultimately, Gala
Games assured the public that the issue had been contained, with
all contracts being secured and increased safeguards being
implemented to prevent future occurrences. Featured image from
Shutterstock, chart from TradingView.com
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