Gala Games, a blockchain gaming platform, had a turn of events when reports of a $130 million token theft dispute involving individuals in its leadership team made the news. This development led to the fall in Gala value, the company’s native token.
According to the news that followed the allegations, a former company executive and co-founder, Wright Thurston, misused a substantial sum of GALA tokens, seriously harming investor faith in the platform. The conflict started when Thurston, who held a senior position within the organization, had stolen 8.645 billion GALA tokens in 2021, worth an estimated $130 million.
As published on the BeinCrypto platform, Thurston’s defense stated that he only kept the tokens in secure wallets on behalf of Gala Games when questioned about these claims. The controversy has shocked the entire cryptocurrency community, while the blockchain gaming industry, investors, and stakeholders have started looking for more explanations.
Reacting to this development, the Gala Games’ president, Jason Brink, stated his support for the transparency legal action offers. He stressed the firm’s dedication to finding a solution to the conflict and maintaining its integrity in the eyes of the public.
CypherMindHQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!
Thurston is also accused of selling Gala gaming node operation permits illegally. Contrary to the CEO’s proactive duty, Thurston has also been charged with being an absentee director. However, concerns over the internal control and governance at Gala Games have been raised in light of these claims.
Schiermeyer, Indicted, Gala Management Works On Winning Back Customer Trust
Eric Schiermeyer, a different CEO in GALA, was also indicted alongside Thurston in this case, causing the company to lose almost $600 million in GALA tokens and shareholders’ assets. The report states that Schiermeyer allegedly diverted corporate cash for personal expenses, putting Gala Games in an insecure financial condition.
Schiermeyer has also been accused of creating offshore companies to take advantage of business possibilities intended for Gala Games, which raises concerns about potential conflicts of interest. Meanwhile, as at press time, the value of the GALA token has fallen by 97.9% from its peak price of $0.83 this year.
The platform has suffered another setback due to the current scandal, weakening investor confidence and making the token less valuable. Analysing the situation, Oluwapelumi Adejumo, a cryptocurrency journalist with BeinCrypto, admonished that Gala Games must overcome the difficult task of winning back the trust, and demonstrating its dedication to ethical and transparent leadership as it tries to manage the situation.
A survey on the online cryptocurrency community revealed that both GALA traders and investors are fixated on the event’s outcome, as the value of GALA continues to decline, selling at $0.016732 as of press time.