Major Security Incident Hits Gala Games as Hacker Minted and Sold $200 Million Worth of GALA Tokens on Uniswap
The native token of Gala Games, GALA, experienced a significant drop on Monday following the discovery of a massive transfer of over $200 million worth of GALA tokens, initially feared to be a hack.
The company later attempted to reassure investors by announcing that the security incident had been “contained” and that the affected wallet had been frozen.
Details of the Incident and Gala Games’ Response
On Monday, a hacker created 5 billion Gala tokens and sold them on the decentralized exchange Uniswap, according to on-chain data. This activity was not announced by Gala Games’ representatives or promptly explained on the project’s Discord server, raising concerns that this significant issuance and sale was the result of a massive hack.
Eric Schiermeyer, CEO of Gala Games, also known as Benefactor, stated that the company had “identified the compromise and, in 45 minutes, secured and removed unauthorized access to the $GALA contract.” He added that the Ethereum contract of $GALA is secure and protected by a multi-signature wallet and has never been compromised.
Schiermeyer indicated that the company had contacted the FBI, the US Department of Justice, and a “network of international authorities” to handle the situation.
Following the drop, the price of GALA plummeted to $0.039, representing a 20% decrease from the day’s previous high, before stabilizing at $0.042.
