Gala Games recovers $22M of stolen crypto
Blockchain platform Gala Games has said that it succeeded in recovering millions of dollars’ worth of crypto that attackers had obtained only a day prior.
Image by Cybernews.
Blockchain platform Gala Games has said that it succeeded in recovering millions of dollars’ worth of crypto that attackers had obtained only a day prior.
Earlier this week, attackers obtained over $22 million in cryptocurrency from the Gala Games. On Monday, the company said that an “isolated incident” had impacted several crypto wallets on the platform.
“This was an isolated incident, the cause of which has been addressed, and we are working closely with law enforcement to investigate the individuals behind the breach,” Gala Games said.
According to Eric Schiermeyer, Gala Games’ founder, the incident resulted in an unauthorized sale of 600 million Gala tokens for Ethereum tokens, amounting to over $22 million.
Update: The funds from the recent security incident have been recovered.
undefined Gala Games (@GoGalaGames) May 21, 2024
At this time we will be using #GalaSwap to convert the Ethereum back to $GALA.
The unnamed malicious actors minted five billion tokens, worth over $222 million, if sold at the price Gala tokens were worth on May 22nd. They’ve only managed to sell 600 million tokens, leading Schiermeyer to call the remaining 4.4 billion as “effectively burned.”
“We messed up our internal controls...This shouldn't have happened, and we are taking steps to ensure it doesn't ever again,” Schiermeyer said on X.
The platform’s founder also revealed that the company was working with federal US authorities and that the culprit behind the attack has likely been identified.
In the early hours of May 22nd, Gala Games posted a message saying, “the funds from the recent security incident have been recovered,” and users were invited to apply for compensation.
So far, it is unclear who was behind the incident and how the attackers succeeded in exploiting the Gala Games platform.
Last August, Schiermeyer and Wright Thurston, the creator of another platform, filed lawsuits against each other. Schiermeyer claims his colleague stole $130 million worth of Gala tokens, while Thurston alleges his colleague made the company waste millions of dollars.