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Gala Games, a blockchain gaming startup co-founded by Zynga’s Eric Schiermeyer, experienced a major security breach involving GALA tokens. On May 21, the company announced via an X post that it had encountered a multi-million dollar “security incident.” The affected wallet has since been frozen, though the exact cause of the breach remains undisclosed.
Gala Games stated, “This was an isolated incident, the cause of which has been addressed and we are working closely with law enforcement to investigate the individuals behind the breach.”
In another update on May 21, CEO Eric Schiermeyer disclosed that an unknown individual minted 5 billion GALA tokens worth $200 million on May 20. The perpetrator managed to sell approximately 600 million of these tokens. 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 steps to ensure it doesn’t ever again […] There is the issue of our daily distribution…we will be having a node vote on how to handle this issue. As usual, the community will decide how we proceed,” Schiermeyer stated.
The news of the breach caused the GALA token’s value to plummet to $0.037, marking a nearly 20% drop. However, it quickly rebounded to $0.042.
Founded in 2018 by Eric Schiermeyer, Wright Thurston, and Michael McCarthy, Gala Games is a blockchain-based gaming platform focused on giving control back to the players. To date, the company has raised $5 million in funding from investors such as Block Wolves, Broslyn Capital, CaptureAlpha, DWF Labs, and Ignite Group, according to PitchBook data.