Hackers Steal US$240 Million, Drop GALA Token, And Cause Panic.

Hackers Steal US$240 Million, Drop GALA Token, And Cause Panic.

Gala Games, a renowned Web3 gaming company, recently had a severe security incident that shook their ecosystem.

This event involves hackers manipulating the platform smart contracts, resulting in the illicit creation of a huge number of GALA tokens.

Impact of Hack on GALA Token Price

According to the Defiant, the attack created investor fear, resulting in a 20% drop in the price of the GALA token, which fell to US$0.038 from roughly US$0.047, according to CoinMarketCap.

Hackers successfully attacked the GALA token smart contract, producing and seizing tokens worth US$240 million.

Gala Games responded quickly, taking steps to limit the impact. Although hackers sold over 600 million tokens worth US$21 million using the decentralized market Uniswap, the firm was able to freeze the remaining 4.4 billion GALA tokens. This bold measure avoids potential future losses.

Official Statement and Responsibilities

Gala Games CEO Eric Schiermeyer talked frankly about the matter, assuring stakeholders that the ETH contracts for GALA tokens were secure and safeguarded by a multi-signature wallet.

Schiermeyer recognized weaknesses in internal controls and promised to take corrective action to avoid such events in the future.

"This should not have happened, and we are taking steps to ensure this does not happen again," Schiermeyer stated.

He accepted responsibility for the infraction. Solidity developer 0xQuit first identified this hack, pointing to the systematic unlawful minting and sale of GALA tokens.

Actor Identification and Community Engagement

Schiermeyer further stated that the offender has been identified, and Gala Games is cooperating with authorities to settle the situation.

He stressed the community responsibility in determining how to manage the problem, particularly in terms of the daily distribution of GALA tokens as rewards to network participants such as node operators and users.

The 4.4 billion frozen tokens are now regarded effectively burnt, which means they can't be accessed or moved, removing them from circulation. This process seeks to reestablish confidence and stability in the ecosystem.

Following the initial impact of the attack, the GALA price began to recover, climbing to roughly US$0.041. This partial rebound is consistent with a larger market rally, which included a strong 20% increase in Ethereum valuation.

Previous Post Next Post