According to on-chain documents and claims in Gala’s Discord community, the hacker who generated and then sold hundreds of millions of its native (GALA) token on Monday gave Gala Games roughly $23 million worth of ETH tokens. Gala receives an unexpected $23 million in ETH tokens as a result of the turn of events. The CEO of the project, Eric Schiermeyer, better known as Benefactor, stated in its Discord chat, “We will probably buy and burn on galaswap.” This entails purchasing GALA tokens with ETH and removing them from circulation.
Gamers can hold NFTs and other cryptocurrency assets while playing a range of video games on the blockchain gaming platform Gala Games. The platform’s currency for purchasing and selling in-game items is the GALA token. The action was taken a day after 5 billion fresh GALA tokens were minted by an anonymous hacker by taking advantage of Gala’s internal restrictions. After that, the person made close to 6,000 ETH tokens by selling 600 million of those tokens on decentralized markets. All of the ETH in the compromised wallet was moved to a wallet under Gala Games’ control on Tuesday.
“We believe we have identified the culprit and we are currently working with the FBI, DOJ and a network of international authorities,” Schiermeyer said Monday.
The exploit caused GALA’s price to drop as much as 19% on Monday as traders fretted over the implications of the increased circulating supply and the hackers’ selling pressure.
Earlier Tuesday, Gala investor DWF Labs said it had purchased 28 million GALA tokens “to alleviate market selling pressures.”
GALA was trading around $0.43 at press time, still off of yesterday’s pre-hack heights.