Gala Games suffers $200 million security incident due to “internal controls”

Blockchain gaming platform Gala Games has apparently suffered a security breach that resulted in the loss of more than 4 billion GALA tokens.

Gala Games, a blockchain gaming startup that Zynga co-founder Eric Schiermeyer helped found, suffered a multimillion-dollar “security incident” involving GALA tokens, the company said in a May 21 statement X contribution with.

According to the announcement, the affected wallet has been “frozen,” although it is not clear what exactly caused the breach.

“This was an isolated incident, the cause of which has been resolved, and we are working closely with law enforcement to investigate the individuals behind the breach.” Gala Games

In another post on Schiermeyer assured users that the Gala Games team “secured and removed unauthorized access to the GALA contract” within 45 minutes.

“We messed up our internal controls… This shouldn’t have happened and we are taking action to ensure it never happens again (…) There is the issue of our daily distribution… we will have a node vote on how we deal with it should circumvent this problem. As usual, the community will decide how we proceed.”

Eric Schiermeyer

Following the news, the GALA token suddenly plummeted to $0.037, losing almost 20% before rallying back to $0.042.

Founded in 2018 by Eric Schiermeyer, Wright Thurston and Michael McCarthy, Gala Games is a blockchain-based gaming platform that values ​​giving control back to players. According to PitchBook, the company has raised a total of $5 million in funding to date, primarily from investors such as Block Wolves, Broslyn Capital, CaptureAlpha, DWF Labs and Ignite Group.