Exploiter of Gala Games returns $22 million GALA tokens in ETH

An exploiter recently minted $200 million worth of GALA tokens. They have been identified as a security contractor who slipped after connecting their wallet without a VPN. The exploiter has now returned $22.3 million of GALA tokens in ETH. It roughly translates to 5913.2 Ether tokens and 600 million GALA tokens.

The market only sold a small portion of the exploit. GALA claims that GalaChain’s blocklist protocol acted swiftly to freeze the wallet and halt the sale of more tokens. GALA has said that the action was taken within 45 minutes, adding that almost 4.4 billion GALA tokens were frozen out of the 5 billion that were minted.

Gala Games has yet to disclose the attacker’s identity or other details publicly. According to Eric Schiermeyer, the company’s Chief Executive Officer and Co-Founder, the team has identified the attacker’s home address and could potentially buy back the portion and burn the equivalent tokens via returned ETH.

Moving forward, Gala plans to conduct a governance vote for a call to burn 4.4 billion blocklisted GALA tokens.

GALA is currently up by 5.68% in the last 24 hours, listed at $0.04416. It further reflects an upswing of 9.93% in the last 7 days and a decline of 12.65% in the last 30 days.  The 24-hour trading volume has fallen by 23.21%, causing a massive hit. At the time of writing this piece, market capital was up 5.31%.

This development is based on the reports of GALA’s security breach, details of which surfaced on Monday. The network had ended up losing $200 million worth of tokens, thereby leading to a 15% decline in valuation. The Gala team revealed the incident in the early hours of May 20, 2024. It was stated that the attack might have targeted the smart contract of the platform, which triggered unauthorized transactions.

Gala Games then halted transactions for a couple of hours, assuring community members that they could handle the matter.

This is not the only case of hacking in the blockchain sphere. Another incident involves a hacker who exploited Kronos Research by transferring $2.6 million in ETH, on top of $25 million worth of exploits. The investigation began on May 21, 2024, when three suspicious transactions came to light.

On May 17, 2024, Alex Labs reportedly froze $3.9 million in funds that an attacker had exploited.

Simply put, what Gala Games experienced is almost a normal trend in the blockchain sphere, signaling a dire need for a security mechanism to keep funds and data secure.

The governance vote of the Gala will now determine whether to burn or not to burn the frozen tokens.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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