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Gaming Token Gala Stabilizes as Company Says Security Incident is ‘Contained’
The native token of the crypto gaming project Gala Games (GALA) fell sharply on Monday amid fears of a major transfer of GALA tokens worth more than $200 million that traders feared was a hack, only to recover after the company said the security incident was “contained and the affected wallet was frozen.”
On Monday, an unknown party minted 5 billion Gala tokens and sold them on the decentralized exchange Uniswap, according to blockchain explorers.
Gala Games representatives had not previously announced the business or offered a quick explanation in the project’s Discord server, sparking fears that the mass minting and sale was a hack.
Eric Schiermeyer, CEO of Gala Games also known as Benefactor, said in a post on X that the company “identified the compromise and within 45 minutes we secured and removed the unauthorized access to the $GALA contract.”
“It is important to note that our ETH contract for $GALA is safe and protected by a multi-sig wallet. It has never been compromised,” he wrote. “It is important to note that our ETH contract for $GALA is safe and protected by a multi-sig wallet. It has never been compromised.”
Schiermeyer said the company has been in contact with the FBI, the U.S. Department of Justice and a “network of international authorities.”
GALA’s price subsequently fell to $0.039, down 19% from the day’s high set just over an hour earlier. It has since recovered and stabilized at $0.042, according to CoinGecko data.
UPDATE (May 21, 01:56 UTC): Updates the story with a statement from Gala Games, Eric Schiermeyer. Update the price.