EddieJayonCrypto

 21 May 24

tl;dr

The native token of crypto gaming project Gala Games (GALA) experienced a sharp decline amid concerns of a potential hack involving over $200 million worth of GALA tokens. However, the company reassured that the security incident had been contained, leading to a price recovery. An unknown party mint...

Gala Games' GALA token experienced a sharp decline amid concerns of a potential hack involving over $200 million worth of GALA tokens. However, the company reassured that the security incident had been contained, leading to a price recovery.

An unknown party minted 5 billion Gala tokens and sold them on decentralized exchange Uniswap, prompting fears of a hack. Gala Games' CEO confirmed the compromise, securing and removing unauthorized access to the $GALA contract. The company has engaged with law enforcement agencies, and GALA's price, which initially dropped to $0.039, has since stabilized at $0.042.

On Monday, an unknown party minted 5 billion Gala tokens and proceeded to sell them on decentralized exchange Uniswap, according to blockchain explorers. Gala Games representatives had not previously announced the activity nor did they offer a quick explanation in the project's Discord server, spurring fears that the mass mint and sell was a hack.

Eric Schiermeyer, Gala Games' CEO who also goes by the handle 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." He also mentioned the security of the ETH contract for $GALA, noting it was secure and under the protection of a multi-sig wallet and was never compromised.

Schiermeyer said the company has been in touch with the FBI, U.S. Department of Justice, and a "network of international authorities." GALA's price sank as low as $0.039 in the aftermath, down 19% from the day's high set just over an hour earlier. It has since recovered and stabilized at $0.042, according to CoinGecko data.

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