Blockchain gaming giant Gala Games has suffered another security breach, this time resulting in the unauthorized sale of 600 million GALA tokens worth $23 million. CEO Eric Schiermeier admitted that the incident resulted from internal control failures.
The exploit occurred on May 20 at 19:32 UTC when a hacker accessed Gala Games’ admin address. This allowed them to mine 5 billion new GALA tokens worth about 200 million dollars. Without wasting any time, they sold 600 million on Uniswap.
Unfortunately, this isn’t the first Gala Games rodeo with security issues. Earlier this year they suffered a similar attack that cost them $130 million dollars.
The hack was initially reported by blockchain analyst devops199fan, who noticed a sudden influx of GALA tokens. Gala Games reacted quickly, freezing the hacked wallet and securing its Ethereum contract.
To prevent further damage, Gala Games made sure that the remaining 4.4 billion tokens became unmarketable and were burned. They also work with law enforcement agencies such as the FBI to bring those responsible to justice.
In the immediate aftermath, the price of GALA dropped 20% to a low of $0.038. However, it has shown signs of recovery, rising to $0.041, according to CoinGecko.
Despite these setbacks, Gala Games intends to learn from its mistakes and strengthen internal controls. Despite the ongoing legal battles, the company remains committed to providing a safe platform for gaming enthusiasts on the blockchain.
