Gala Games has received approximately $22 million worth of Ether (ETH) from the individual responsible for a security breach on May 20. During the incident, around $200 million worth of Gala (GALA) tokens were minted, with a small portion sold before the wallet was frozen.
On May 21, the attacker’s wallet returned 5913.2 ETH, valued at $22.3 million, which was close to the market value of the 600 million GALA tokens they had sold a day earlier.
In a blog post on May 21, Gala attributed the return of the ETH to their prompt and effective response, along with the involvement of federal law enforcement agencies. They utilized GalaChain’s blocklist protocol feature to freeze 4.4 billion GALA out of the 5 billion minted within 45 minutes.
Eric Schiermeyer, Gala’s co-founder and CEO, mentioned in a post on X and Discord on May 20 that the alleged attacker had been identified, including details such as their home address.
While Gala Games has not publicly confirmed the identity or method of the exploit, some community members suggest that the attack originated from a security contractor who made a mistake by connecting to the wallet without using a VPN.
Schiermeyer stated in a Discord post that the team intends to use the returned ETH to buy back and burn an equivalent amount of GALA tokens on Galaswap.
Additionally, a Gala Games blog post hinted at a governance vote to decide whether the 4.4 billion blocklisted GALA tokens will be considered burned.
In related news, DWF Labs disclosed purchasing 28 million GALA tokens in the open market to stabilize the token’s value, emphasizing the importance of security for their investments and communities.
As per CoinGecko, GALA has experienced a 0.4% increase in the last 24 hours, reaching $0.043, and a 9.3% rise over the past seven days.
May 2024, Cryptoniteuae
