Gala Games Hit by $23 Million Token Exploit Due to ‘Messed Up’ Internal Controls
Gala Games Hit by $23 Million Token Exploit Due to ‘Messed Up’ Internal Controls
Gala Games, a leading blockchain gaming platform, recently experienced a severe security breach, leading to the unauthorized sale of 600 million them tokens, valued at $23 million. CEO Eric Schiermeyer attributed the incident to inadequate internal controls, sparking concerns over the platform’s security measures.
Details of the Exploit
The exploit took place on May 20 at 7:32 pm UTC, when a hacker gained access to a them admin address. This breach allowed the attacker to mint 5 billion new GALA tokens worth approximately $200 million. Subsequently, 600 million of these newly minted tokens were sold on the decentralized exchange Uniswap.
Historical Context of Security Issues
This incident is not the first security challenge faced by Gala Games. In 2021, the company lost $130 million in a similar exploit, highlighting a recurring issue with its security protocols.
Response and Mitigation Efforts
Blockchain analyst @devops199fan was the first to report the sudden minting of a large volume of GALA tokens. Promptly, Gala Games took measures to mitigate further damage by freezing the compromised wallet and preventing the sale of the remaining tokens.
.@poweredbygala hacked?
— devops199fan
seems like someone minted 5B tokens ~1 hour ago, valued at ~$220M
has been dumping in batches of 100 ETH on @0xProject, address is currently sitting on ~4.6K ETHhttps://t.co/08D4qAd0lk pic.twitter.com/A63jxhESlW⌐◨-◨ (@devops199fan) May 20, 2024
The company identified and removed unauthorized access to the GALA contract, ensuring stakeholders that its Ethereum contract remains secure. CEO Schiermeyer announced that the remaining 4.4 billion tokens were effectively rendered unsellable and burned to prevent additional exploitation.
Cooperation with Authorities
Gala Games is collaborating with the FBI, the U.S. Justice Department, and international authorities to investigate the breach and apprehend the culprits. Schiermeyer emphasized the company’s commitment to preventing future incidents through improved internal controls.
Market Impact and Recovery
In the immediate aftermath of the breach, GALA’s price fell to a 24-hour low of $0.038, a 20% drop from its daily high. However, CoinGecko reports that the token price has since partially recovered to $0.041.
Internal Turmoil at Gala Games
Adding to the company’s challenges, ongoing internal legal battles between Schiermeyer and co-founder Wright Thurston over allegations of mismanagement and theft further complicate the situation.
Broader Context: Recent Crypto Exploits
The recent breach at them is part of a broader trend of security exploits in the crypto space. For instance, Sonne Finance suffered a $20 million exploit on May 14, affecting various cryptocurrencies. Similarly, Rain cryptocurrency exchange experienced a potential exploit on April 29, involving significant outflows of various cryptocurrencies worth approximately $14.1 million.
Pike Finance, a DeFi lending protocol, also faced a $1.6 million exploit due to a smart contract vulnerability, highlighting the pervasive nature of security issues in the crypto industry.
Conclusion
Despite the breach, Gala Games assures its users and investors of its commitment to implementing more robust internal controls and maintaining a secure platform for blockchain gaming. The company’s efforts to rectify the situation and prevent future incidents will be crucial in restoring trust and stability.
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Gala Games Hit by $23 Million Token Exploit Due to ‘Messed Up’ Internal Controls
Gala Games Hit by $23 Million Token Exploit Due to ‘Messed Up’ Internal Controls
Gala Games, a leading blockchain gaming platform, recently experienced a severe security breach, leading to the unauthorized sale of 600 million them tokens, valued at $23 million. CEO Eric Schiermeyer attributed the incident to inadequate internal controls, sparking concerns over the platform’s security measures.
Details of the Exploit
The exploit took place on May 20 at 7:32 pm UTC, when a hacker gained access to a them admin address. This breach allowed the attacker to mint 5 billion new GALA tokens worth approximately $200 million. Subsequently, 600 million of these newly minted tokens were sold on the decentralized exchange Uniswap.
Historical Context of Security Issues
This incident is not the first security challenge faced by Gala Games. In 2021, the company lost $130 million in a similar exploit, highlighting a recurring issue with its security protocols.
Response and Mitigation Efforts
Blockchain analyst @devops199fan was the first to report the sudden minting of a large volume of GALA tokens. Promptly, Gala Games took measures to mitigate further damage by freezing the compromised wallet and preventing the sale of the remaining tokens.
.@poweredbygala hacked?
— devops199fan
seems like someone minted 5B tokens ~1 hour ago, valued at ~$220M
has been dumping in batches of 100 ETH on @0xProject, address is currently sitting on ~4.6K ETHhttps://t.co/08D4qAd0lk pic.twitter.com/A63jxhESlW
The company identified and removed unauthorized access to the GALA contract, ensuring stakeholders that its Ethereum contract remains secure. CEO Schiermeyer announced that the remaining 4.4 billion tokens were effectively rendered unsellable and burned to prevent additional exploitation.
Cooperation with Authorities
Gala Games is collaborating with the FBI, the U.S. Justice Department, and international authorities to investigate the breach and apprehend the culprits. Schiermeyer emphasized the company’s commitment to preventing future incidents through improved internal controls.
Market Impact and Recovery
In the immediate aftermath of the breach, GALA’s price fell to a 24-hour low of $0.038, a 20% drop from its daily high. However, CoinGecko reports that the token price has since partially recovered to $0.041.
Internal Turmoil at Gala Games
Adding to the company’s challenges, ongoing internal legal battles between Schiermeyer and co-founder Wright Thurston over allegations of mismanagement and theft further complicate the situation.
Broader Context: Recent Crypto Exploits
The recent breach at them is part of a broader trend of security exploits in the crypto space. For instance, Sonne Finance suffered a $20 million exploit on May 14, affecting various cryptocurrencies. Similarly, Rain cryptocurrency exchange experienced a potential exploit on April 29, involving significant outflows of various cryptocurrencies worth approximately $14.1 million.
Pike Finance, a DeFi lending protocol, also faced a $1.6 million exploit due to a smart contract vulnerability, highlighting the pervasive nature of security issues in the crypto industry.
Conclusion
Despite the breach, Gala Games assures its users and investors of its commitment to implementing more robust internal controls and maintaining a secure platform for blockchain gaming. The company’s efforts to rectify the situation and prevent future incidents will be crucial in restoring trust and stability.
Read More
Ethereum Price Reaches Last H1 Support, Next Major Resistance Comes Into View