In a recent security incident, online gaming company Gala Games fell victim to an exploit that led to the unauthorized minting of 5 billion tokens worth approximately $214 million.
The hacker behind the breach then sold 592 million GALA tokens worth $21.8 million, according to blockchain analytics firm Lookonchain confirmed.
The CEO of Gala Games takes responsibility for the violation
Gala Games he replied to the breach, assuring the community via the X social media platform (formerly Twitter) that the GALA security incident has been contained and the affected wallet has been frozen.
The company acknowledged that the incident was an isolated incident and said it had addressed the cause by working closely with law enforcement to investigate those responsible for the incident. infringement.
Eric Schiermeyer, CEO of Gala Games, expressed his regret over the incident, referring to his previous stance on projects where hacks occurred.
Schiermeyer revealed that the breach led to the unauthorized sale of 600 million GALA tokens worth $21 million and the subsequent burning of 4.4 billion tokens. Within 45 minutes, Gala Games identified the compromise and successfully secured and removed unauthorized access to the GALA contract.
Calming stakeholdersSchiermeyer emphasized that the Ethereum (ETH) contract for GALA remains secure and protected by a multi-signature wallet (multi-sig) and no compromises have been detected.
While acknowledging deficiencies in internal controls, Schiermeyer also admitted responsibility for the incident and outlined steps that should be taken to prevent it from happening again.
Gala Games expressed confidence that the perpetrator of the infringement would be identified. They reaffirmed busy cooperation with the Federal Bureau of Investigation (FBI), the Department of Justice (DOJ) and the network of international authorities to ensure appropriate Legal Actions they are being hunted.
The incident raised concerns about the project’s daily distribution, prompting Gala Games to propose a node vote to resolve the issue. In line with their community-centric approach, the decision on how to proceed will be made by the community itself.
Support of DFW laboratories
In response to the incident, DFW Labs, a Web3 investor and market maker, took action to alleviate selling pressure in the market. They bought 28 million GALA tokens from the open market to stabilize the token’s value, which dropped to $0.037 on Monday following the exploit.
However, thanks to the DFW Labs token investment bounced back to the current trading price of $0.0431, representing a loss of 7.8% in the last 24 hours.
Ultimately, Gala Games assured the public that the issue had been contained, and all contracts had been secured and enhanced security measures had been implemented to prevent similar incidents in the future.
Featured image from Shutterstock, chart from TradingView.com
