2024-05-21 15:30:01
Gala Games' $23M Token Breach Exposes Internal Control Woes Blockchain gaming giant Gala Games has been hit by yet another security breach, this time resulting in the
unauthorized sale of 600 million GALA tokens worth a staggering $23 million. CEO Eric Schiermeyer admitted that the incident was a result of
internal control failures.
The exploit took place on May 20th at 7:32 pm UTC, when a hacker managed to gain access to a Gala Games admin address. This allowed them to mint an astonishing
5 billion new GALA tokens, valued at around $200 million. They wasted no time, selling off 600 million on Uniswap.
Sadly, this isn't Gala Games' first rodeo with security woes. Earlier this year, they suffered a similar attack that cost them a whopping $130 million.
The breach was initially flagged by blockchain analyst devops199fan, who noticed the sudden influx of GALA tokens. Gala Games acted swiftly, freezing the compromised wallet and securing their Ethereum contract.
To prevent further damage, Gala Games made sure that the remaining 4.4 billion tokens were rendered
unsellable and burned. They're also teaming up with law enforcement agencies like the FBI to bring the culprits to justice.
The immediate aftermath saw GALA's price take a hit, dropping by 20% to a low of $0.038. However, it has since shown signs of recovery, climbing back up to $0.041 according to CoinGecko.
Despite these setbacks, Gala Games is determined to learn from its mistakes and bolster its internal controls. With ongoing legal battles adding to the turmoil, the company remains committed to providing a secure platform
for blockchain gaming enthusiasts.
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