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$22 million in cryptocurrency stolen from Gala Games blockchain platform
More than $22 million in cryptocurrency was stolen from the Gala Games this week after someone compromised the blockchain platform.
The company confirmed it had addressed a security incident Monday evening, writing on social media that it was an “isolated incident, the cause of which is being addressed.”
“We are working closely with law enforcement to investigate the individuals behind the breach,” the company says She said, noting that it will provide updates as the investigation continues. Gala Games is a “play to earn” platform that rewards users with its own digital currency.
Eric Schiermeyer, the founder of Gala Games, explained in his social media post that the hacker managed to make exchange 600 million GALA coins for 5,913 Ethereum, for a total of approximately $22.2 million.
The hacker managed to create even more GALA coins – around 4.4 billion – but the person’s account was frozen by the platform before he could cash out the rest of the stolen loot.
“I always knew there was a reason why I never spoke ill of other projects that were hacked… I am sorry to say that we had an incident that led to the unauthorized SALE of 600 million (US$21 million) of $GALA token and to the actual BURN of 4.4 billion tokens,” Schiermeyer said. When tokens are “burned” it means that they can no longer be sold or used in other transactions.
“We identified the compromise and within 45 minutes we secured and removed the unauthorized access to the $GALA contract,” he added.
Schiermeyer went on to say that the attack occurred because the platform’s internal controls were “messed up” and the company identified the perpetrator. . They are working with the FBI, the US Department of Justice and “a network of international authorities” on the incident.
Several blockchain security investigators She said the problem began when someone managed to take over an administrative account and mint an infinite amount of new coins.
Schiermeyer is best known for co-founding Zynga, a large gaming company behind popular online games such as FarmVille.
Gala Games was created in 2019, presenting itself as the first blockchain gaming platform.
Similar platforms have been a frequent target for hackers. From $320,000 Value in Binance Coin (BNB) was stolen from the cryptocurrency game WonderHero.
One of the largest cryptocurrency attacks ever recorded, involving the popular blockchain game Axie Infinity, has been witnessed more than 600 million dollars removed from the platform in 2022.
The United States Department of the Treasury attributed to the Axie Infinity accident to North Korean government operators, who they stole billions from cryptocurrency companies in the last three years.
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