TL;DR
- Gala Games experienced an exploit that resulted in the theft of over $200 million in $GALA tokens.
- The incident was quickly contained, and the affected wallet was frozen.
- The company is working closely with authorities to investigate the incident and prevent future safety issues.
The cryptocurrency world has witnessed a shocking event at Gala Games, where an exploit resulted in the theft of over $200 million in $GALA tokens.
An unknown attacker, described as a compromised or rogue admin address, reportedly managed to create 5 billion $GALA tokens out of thin air.
The situation became even more worrying when the attacker unauthorizedly sold 600 million of these tokens, worth $29 million, through the decentralized exchange Uniswap.
Gala Games response was quick and decisive.
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
The company managed to contain the incident in a short period of time and froze the affected wallet to prevent further damage.
Gala Games CEO Eric Schiermeyer acknowledged the failure in internal controls that allowed this incident to occur.
Despite immediate action by the company, the price of the $GALA token suffered a 20% drop on the day of the incident, according to official data from CoinMarketCap.
Although the price has since stabilized, this incident highlights the importance of security in the world of cryptocurrencies and the need for companies to implement rigorous measures to protect their users’ assets.
Amid the ongoing investigation, Gala Games reiterated its commitment to security and transparency
Collaboration with authorities and additional security measures Gala Games has emphasized its cooperation with authorities, including the FBI and the Department of Justice, to identify those responsible for the exploit and bring them to justice.
Additionally, the company is implementing additional security measures to protect user funds and prevent future incidents.
These measures include reviewing and improving internal controls, as well as continuing to educate the team on security best practices in the blockchain space.
With these actions, Gala Games seeks to rebuild community trust and ensure the long-term security of its platform and digital assets.
Furthermore, the platform is actively engaging with its community to provide updates on the situation and gather feedback on proposed solutions.
By fostering open communication and collaboration, the company aims to strengthen its relationship with users and demonstrate its commitment to transparency and accountability.
Through these combined efforts, Gala Games is striving to emerge from this incident stronger and more resilient than before.
