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Hacker Returns $22M to Gala Games After GALA Token Breach

Key Takeaways

  • Gala Games recovered $22 million in ETH after a security breach involving unauthorized minting and sale of GALA tokens;
  • New security features helped freeze 4.4 billion GALA tokens; a governance vote will decide their fate;
  • Gala's investor DWF Labs bought 28 million GALA tokens to stabilize the market.
Hacker Returns $22M to Gala Games After GALA Token Breach

Blockchain gaming platform Gala Games has successfully recovered approximately $22 million in Ether (ETH) from an attacker responsible for a major security breach on May 20.

This breach involved the unauthorized minting and partial sale of 5 billion GALA tokens, worth approximately $200 million.

Gala Games announced the recovery in a blog post, highlighting the effectiveness of their quick response and the assistance of law enforcement agencies.

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On May 21, the attacker's wallet returned 5913.2 ETH, valued at approximately $22.3 million, closely matching the market value of the 600 million GALA tokens sold a day earlier. Gala Games CEO Eric Schiermeyer mentioned in a Discord message that the team is planning to use the returned ETH to buy back and burn an equivalent amount of GALA tokens.

Gala reported that it utilized a new feature implemented with its V2 contract upgrade to successfully freeze 4.4 billion of the 5 billion GALA tokens minted. A governance vote is planned to determine whether these blocklisted tokens should be permanently considered as burned.

While Gala Games has not officially disclosed the identity or the exact method of the exploit, Jason Brink, an advisor at Gala, suggested that the breach may have been executed by a security contractor who accidentally connected to the wallet without a VPN.

In a post on X, Gala investor DWF Labs announced the purchase of 28 million GALA tokens on the open market to stabilize the token's value and demonstrate support for its portfolio companies.

GALA's value has increased by over 8% within the last 24 hours, trading at $0.0452 at the time of writing.

Overall, Gala's rapid response and community-focused approach have not only reduced the impact of the breach but also restored confidence among its users and investors.

In related news, the memecoin creation platform pump.fun also recently faced a security breach. An ex-employee confessed to stealing $1.9 million from the platform and reported being arrested and released on bail.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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