Gala Games CEO Takes Responsibility for Massive $240 Million Token Heist
In a shocking turn of events, Gala Games, a prominent blockchain gaming platform, fell victim to a massive token exploit that drained approximately $240 million worth of GALA tokens from the company’s reserves. The incident sent shockwaves through the cryptocurrency community, leading to a swift 20% drop in the token’s value, plummeting from around $0.048 to $0.038.
Eric Schiermeyer, the CEO of Gala Games, has taken full responsibility for the security lapse, admitting to internal control failures that enabled the exploit. In a candid statement, Schiermeyer acknowledged the company’s shortcomings and vowed to implement stringent security measures to prevent such incidents from occurring in the future.
“We messed up our internal controls…This shouldn’t have happened, and we are taking steps to ensure it doesn’t ever again,” Schiermeyer stated, expressing remorse over the incident.
Identifying the Culprit and Collaborating with Authorities
Schiermeyer revealed that Gala Games has likely identified the perpetrator behind the exploit and is actively collaborating with the FBI, the Department of Justice, and international authorities to bring the responsible party to justice.
“We believe we have identified the culprit, and we are currently working with the FBI, DOJ, and a network of international authorities,” he added, underscoring the company’s commitment to pursuing legal action against the attacker.
The Exploit and Its Aftermath
According to reports, an attacker gained unauthorized access to a Gala Games admin address on Monday, exploiting a vulnerability to mint a staggering 5 billion new GALA tokens, worth around $200 million at the time. The attacker then successfully sold 600 million of the newly minted tokens on the decentralized exchange Uniswap, profiting from approximately $29 million.
In response to the breach, Gala Games took immediate measures to freeze the compromised wallet, effectively rendering the remaining 4.4 billion tokens unsellable and “effectively burned.” Schiermeyer reassured stakeholders that the Ethereum contract for GALA was never at risk, as it was protected by a multi-signature wallet.
“It’s important to note our ETH contract for $GALA is secure and under the protection of a multi-sig wallet. It was never compromised,” he noted.
A Wake-Up Call for Improved Security
While the incident has undoubtedly dealt a significant blow to Gala Games’ reputation, it serves as a stark reminder of the importance of robust security measures in the cryptocurrency and blockchain industry. As the adoption of digital assets continues to grow, companies must prioritize the implementation of stringent security protocols to safeguard user funds and maintain trust within the ecosystem.
Gala Games’ commitment to transparency and accountability in the aftermath of the exploit is commendable, and the company’s collaboration with law enforcement agencies demonstrates its determination to hold the perpetrator accountable. However, the road to regaining user confidence may be a long and arduous one, as the gaming platform works to rebuild trust and strengthen its security infrastructure.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
