Gala Games CEO Eric Schiermeyer said that the attacker gained unauthorized access to the administrator's address. And he used this access to issue 5 billion new GALA tokens, which at that time were worth a total of about $200 million. The hacker was able to sell 600 million of the issued tokens on the decentralized exchange Uniswap. Security specialists closed unauthorized access to the GALA contract only 45 minutes after the incident began.
Measures to freeze the compromised wallet have already been taken; the remaining 4.4 billion tokens became unsaleable and were “virtually burned,” Eric Schirmeyer assured. The Ethereum contract for GALA was not compromised because it is protected by multisigs.
“Our internal control system was breached. This should not have happened and we are taking steps to ensure this never happens again. We are currently working with the Federal Bureau of Investigation, the US Department of Justice and international organizations. The question remains regarding the daily distribution of tokens. We will hold a vote and the community will decide how to proceed,” the CEO wrote in X.
This is not the first time that Gala Games has experienced token loss. Earlier, Eric Schirmeyer sued the investment company True North United, accusing him of stealing GALA tokens worth $130 million. The head of the company, Wright Thurston, denied the offenses, saying that Schirmeyer was the one who embezzled the assets.
Source: Bits
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