Gala Games (GALA) experienced a significant setback as an attacker exploited its smart contract, swiping tokens worth approximately $240 million.
The attacker minted and absconded with 5 billion GALA tokens, selling 600 million tokens via Uniswap, valued at around $29 million. This exploit caused GALA's price to plummet by 20% within an hour, dropping from $0.048 to $0.038.
CEO Eric “Benefactor” Schiermeyer promptly addressed the situation, confirming the exploit on the Gala Discord server. Gala Games swiftly secured and removed unauthorized access to the GALA contract within 45 minutes.
Schiermeyer acknowledged internal control failures and initiated steps to prevent future incidents. Gala Games collaborated with law enforcement agencies, including the FBI and DOJ, to investigate the breach.
Gala Games took action to freeze the compromised wallet, rendering 4.4 billion tokens effectively inaccessible and considered destroyed. This measure aims to mitigate further damage to the token's ecosystem.
Despite the exploit, GALA's price rebounded to approximately $0.04272 due to a market-wide surge, maintaining relative stability over the past 24 hours.
The exploit adds to Gala Games' challenges, following previous legal disputes. In 2023, Schiermeyer sued co-founder Wright Thurston, alleging the misappropriation of $130 million in GALA tokens.
Conclusion: Recovery Amidst Challenges
Gala Games faces a daunting recovery process following the exploit. Despite immediate actions and legal efforts, restoring trust in the GALA token's security remains paramount for its future viability.
Current Price: GALA stands at around $0.04272, demonstrating resilience amidst ongoing challenges.