Bitcoin
Gaming Token Gala Stabilizes as Company Claims Security Incident Has Been ‘Contained’
The native token of the crypto gaming project Gala Games (GALA) fell sharply on Monday amid fears of a massive transfer of more than $200 million in GALA tokens that traders feared was a hack, then rallied after the company said the security incident was “contained and the affected wallet was frozen.”
On Monday, an unknown party minted 5 billion Gala tokens and began selling them on the decentralized exchange Uniswap, according to blockchain explorers.
Gala Games representatives had not previously announced the activity or offered a quick explanation on the project’s Discord server, sparking fears that the mass minting and sale was a hack.
Eric Schiermeyer CEO of Gala Games who also goes by the name Benefactor said in a post on X that the company “identified the compromise and within 45 minutes we secured and removed unauthorized access to the $GALA contract.”
“It is important to note that our ETH to $GALA contract is secure and under the protection of a multi-sig wallet. It was never compromised,” he wrote. “It is important to note that our ETH to $GALA contract is secure and under the protection of a multi-sig wallet.
Schiermeyer said the company is in contact with the FBI, the US Department of Justice and a “network of international authorities”.
GALA price subsequently fell to $0.039, a 19% drop from the day’s high set just over an hour earlier. It has since recovered and stabilized at $0.042, according to data from CoinGecko.
UPDATE (May 21, 01:56 UTC): Updates story with a statement from Gala Games, Eric Schiermeyer. Price of updates.