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Gala Games CEO admits guilt in $240 million token exploit
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Following the recent exploit that drained approximately $240 million worth of GALA tokens, Gala Games CEO Eric Schiermeyer responded with a statement, admitting internal control failures and promising to improve security measures. He also said the company has likely identified the perpetrator and is cooperating with the FBI, the Department of Justice and international authorities.
“We messed up our internal controls… This should never have happened and we are taking steps to ensure it never happens again. We believe we have identified the perpetrator and are currently working with the FBI, the Department of Justice and a network of international authorities,” Schiermeyer declared.
AS reported from Crypto Briefing, an attacker gained unauthorized access to a Gala Games administrator’s address on Monday. The attacker used this access to mint 5 billion new GALA tokens, worth around $200 million at the time, and then successfully sold 600 million newly minted tokens on the decentralized exchange Uniswap.
This sale led to a rapid 20% drop in the value of the token, from around $0.048 to $0.038, according to data by CoinGecko. The security breach allowed the attacker to profit approximately $29 million.
The breach was initially reported by 0xQuit, a smart contract developer and security auditor, on Twitter.
Gala Games said it has taken steps to freeze the compromised wallet, effectively making the remaining 4.4 billion tokens unsellable and “burned.” Schiermeyer reassured stakeholders that the Ethereum contract for GALA was never at risk, being protected by a multi-signature wallet.
“It is important to note that our ETH contract for $GALA is safe and protected by a multi-sig wallet. It was never compromised,” she noted.
This isn’t the first time Gala Games has faced an exploit. The project reportedly lost $130 million in a similar incident in 2021.
Despite the turmoil, GALA’s price has recovered to around $0.04, influenced by a broader market recovery that has seen Ethereum’s price rise by 20%.
Ethereum surged above $3,500 on Monday after Bloomberg ETF analysts Eric Balchunas and James Seyffart increased their Ethereum ETF Spot Approval Probability at 75%. Their previous odds were 25%.
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