On Might twenty first, Gala Video games’ sensible contract was exploited with the unauthorized minting of 5 billion GALA tokens, price $240 million. The attacker the managed to change $21 million price of tokens to ETH by way of Uniswap earlier than the remaining tokens had been frozen and burned.
Inside hours of the hack, Gala CEO Eric Schiermeyer, aka Benefactor, acknowledged the incident, admitting, “We recognized the compromise and inside 45 minutes we secured and eliminated unauthorized entry to the GALA contract. We tousled our inner controls… This shouldn’t have occurred.”
In an surprising flip of occasions, on Might twenty second, the attacker returned the ETH. The corporate introduced it will doubtless convert the returned ETH again to GALA tokens. Schiermeyer later confirmed on Gala’s Discord server that “We are going to in all probability purchase and burn on galaswap.”
This wouldn’t be the primary time GALA tokens are unexpectedly burned. In 2023, Gala was surrounded by controversy after asserting it will fork its GALA token and reissue it as GALA v2, adopted by burning 42% of those new tokens. The corporate claimed this was to mitigate the “elementary danger to the general tokenomics of the mission.” Whereas the reason appeared considerably believable, the token burn nonetheless raised questions on the time.
It was later revealed that Gala’s two co-founders, Eric Schiermeyer and Wright Thurston, had filed lawsuits towards one another towards one another involving lots of of tens of millions of {dollars}. Schiermeyer accused Thurston of stealing and promoting at the least $130 million price of GALA tokens, prompting the GALA token fork and burn to render the allegedly stolen tokens nugatory.
In Thurston’s counter-suit, he alleged that Schiermeyer enriched himself on the expense of Gala Video games as an organization and Thurston as a co-owner, referring to Schiermeyer’s management over numerous property.
In response to the latest hack, web3 investor DWF Labs demonstrated its help for Gala Video games by buying 28 million GALA tokens to “alleviate market promoting pressures“.
It’s price noting that DWF Labs was not too long ago within the information with Binance’s surveillance crew claiming it had manipulated the worth of YGG tokens and at the least six different tokens, processing over $300 million in wash trades throughout 2023.
Regardless of its rapid plunge following the exploit, because of the return of funds and DWF Labs’ funding, GALA has since recovered and its value has elevated by 19% within the final 7 days.
