- Price of GALA decreased by around 15% after a security breach that Gala Games eventually fixed.
- Gala Games works with DOJ and FBI to look into the occurrence.
Gala Games announced today that it had controlled a recent security compromise that resulted in the illicit minting of billions of GALA tokens. The event, which generated a strong market response, has forced Web3 to work directly with law enforcement to look into and fix the problem.
The security incident involving the $GALA token has been contained and the impacted wallet has been frozen.
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 (@GoGalaGames) May 21, 2024
Concerns of a possible exploit caused GALA’s price to drop by almost 15%. An illegal party had minted and transferred 5 billion GALA tokens, which at the time were worth about $214 million, according to Lookonchain data. This unexpected inflow of tokens caused investors and other stakeholders great worry.
Gala Games(@GoGalaGames) was exploited and the hacker minted 5B $GALA($214M).
The hacker then quickly dumped 592M $GALA for 5,952 $ETH($21.8M).
The #GalaGames noticed the exploitation and blacklisted the hacker's address, preventing further selling.https://t.co/r6nN34z0pH… pic.twitter.com/oW9NIEsIHM
— Lookonchain (@lookonchain) May 21, 2024
First Update and Details of the Gala Games Incident
Gala Games provided its initial security breach update today. The company verified the event and said that the impacted wallet had been frozen. The company said:
“We are working closely with law enforcement to investigate the individuals behind the breach, and this was an isolated incident, the cause of which has been addressed.”
Gala Games restated its resolve to uphold strict security and openness requirements. As the investigation goes on, the business promised to give users new updates and take all required steps to stop more attacks.
Issues with Internal Control and the Admission of the CEO
Gala Games CEO Eric Schiermeyer admitted the company’s internal control problems in a sincere post on X.
Hey Everyone…
I always knew there was a reason I never talk shit about other projects getting hacked…I'm sorry to say we had an incident that resulted in the unauthorized SALE of 600million (21million usd) $GALA tokens and the effective BURN of 4.4 billion tokens.
We…
— benefactor (@Benefactor0101) May 20, 2024
He disclosed that 600 million GALA tokens had been illegally sold, and that 4.4 billion tokens had then been burned. Schiermeyer underlined that the company had “messed up” its internal procedures, which made the exploit possible.
Investigating Further and Working with Authorities
Gala Games is now cooperating with the FBI, the Department of Justice (DOJ), and foreign authorities to address the problem and thinks it has located the culprit behind the hack. This cooperation confirms the company’s will to fix the problem and improve its security procedures.
Meanwhile, CoinGecko data shows the price of GALA at the moment of writing is at $0.04167, down 4.67% over the last 24 hours. Even with the recent decline, GALA has somewhat recovered over the last seven days, with a little rise of 0.92%.
Gala Games’ priorities are still platform security and investor confidence restoration while it works to fix the security problem and improve its ecosystem. The proactive actions of the company and its collaboration with law enforcement are essential first steps in reaching these objectives.