Gala Games CEO blames $23 million exploit on ‘flawed’ internal controls

A hacker was able to steal and sell $23 million worth of GALA tokens due to a “security flaw” in a recent smart contract “messed up” internal controls, according to Gala Games' CEO.

Earlier on May 20 at 7:32 pm UTC, Blockchain watchers reported that 5 billion GALA (at current prices) worth at least $200 million had been found, even though the responsible wallet was selling Tok as a group – selling it.

The deal reports that GALA has hit a 24-hour low of $0.038 – down 20% from its daily high an hour earlier. It has since recovered slightly to $0.041, according to CoinGecko.

“We had an incident that resulted in an unauthorized sale of 600 million. […] GALA tokens and the effective BURN of 4.4 billion tokens, “Gala Games founder and CEO Eric Scheer May wrote in a post on May 20 X.

“We messed up our internal controls,” he added. “This should not have happened and we are taking steps to prevent it from happening again.”

Schiermeier GALA has “identified the agreement” and removed “unauthorized access to the GALA contract.” He added that the Ethereum contract is “secure” and “has never been breached”.

Gala believed he had identified the person responsible and was working with the FBI, the US Department of Justice and “an international network of authorities,” Schiermeier wrote.

“A security incident involving the GALA token has been detected and the affected wallet has been suspended,” Gala Games added on XPost.

Gala and Schiermeier did not say who was responsible for the problem or how that person received GALA's contract.

Gala Games did not respond to a request for comment.

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In August, Schiermeier and co-founder Wright Thurston filed a lawsuit against each other on behalf of Gala Games.

Thurston says Schiermeyer caused Gala to “sell and waste millions of dollars in company assets” and Schiermeyer claims Thurston stole $130 million from GALA.

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