Gala Games received approximately $22 million in Ethereum (ETH) from the person responsible for a May 20 “security incident” in which $200 million worth of Gala (GALA) tokens were minted and a small portion was sold before the portfolio was sold. frozen.
On May 21, the attacker’s wallet yielded 5913.2 ETH worth $22.3 million, roughly the market value of the 600 million GALA they had sold the day before.
Gala said in a May 21 blog post that ETH’s return came after the team’s “quick and effective response and the involvement of federal law enforcement.”
Gala said it used the new “GalaChain Block List Protocol” feature to effectively freeze 4.4 billion GALA out of 5 billion issued in 45 minutes.
Eric Schirmeier, co-founder and CEO of Gala, said in a May 20 post on X and Discord that the alleged attacker had been identified, including his “home address.”
Gala Games has not publicly confirmed the identity or method of the exploit, but some community members claim that Gala said the attack came from a security contractor who made a mistake after connected to the wallet without VPN.
The team will likely buy back and burn the equivalent GALA tokens using the returned ETH, Schirmeyer said in a Discord post.
“I don’t see anything else we should do in terms of ethics,” Schirmeier wrote. “We will probably buy and burn on Galaswap.”
Meanwhile, a post on the Gala Games blog noted that a governance vote was underway to determine whether the embargoed $4.4 billion GALA “would be considered burned.”
about: Gala Games CEO attributes $23 million exploit to ‘corrupt’ internal controls
The series of developments comes as DWF Labs revealed that it purchased 28 million GALA tokens on the open market to “stabilize the value of the token.”
“The security of our investments and their communities is important to us,” the company said.
GALA price increased by 0.4% in 24 hours to $0.043, an increase of 9.3% over the last seven days, according to CoinGecko.
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