On May 21, Gala Games, a blockchain gaming startup co-founded by Zynga’s Eric Schiermeyer, reported a significant “security incident” involving GALA tokens, resulting in multi-million dollar losses.
The announcement states that the affected wallet has been frozen, but the exact cause of the breach remains unclear.
“This was an isolated incident, the cause of which has been addressed and we are working closely with law enforcement to investigate the individuals behind the breach.” – Gala Games
In a subsequent post on May 21, Gala Games CEO Eric Schiermeyer disclosed that an unidentified person minted 5 billion GALA tokens valued at $200 million on May 20 and managed to sell approximately 600 million GALA tokens. Schiermeyer assured users that the Gala Games team promptly secured and eliminated unauthorized access to the GALA contract within 45 minutes.
“We messed up our internal controls…This shouldn’t have happened and we are taking steps to ensure it doesn’t ever again […] There is the issue of our daily distribution…we will be having a node vote on how to handle this issue. As usual the community will decide how we proceed.” – Eric Schiermeyer
After the announcement, the GALA token swiftly dropped to $0.037, marking a nearly 20% decrease, before rebounding to $0.042.
Established in 2018 by Eric Schiermeyer, Wright Thurston, and Michael McCarthy, Gala Games is a blockchain gaming platform dedicated to empowering players. To date, the company has secured $5 million in funding, primarily from investors such as Block Wolves, Broslyn Capital, CaptureAlpha, DWF Labs, and Ignite Group, as per PitchBook data.
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