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Following a recent exploit that resulted in the leaking of approximately $240 million worth of GALA tokens, Gala Games CEO Eric Schiermeyer responded with a statement, acknowledging flaws in internal controls and vowing to improve security measures. . He also said the company has likely identified the culprit and is cooperating with the FBI, Justice Department and international authorities.
“We mismanaged our internal controls…This should never have happened and we are taking steps to ensure it never happens again. We believe we have identified the culprit and are currently working with the FBI. , the Department of Justice, and a network of international organizations,” Schiermeier said.
Crypto Briefing reports that an attacker gained unauthorized access to Gala Games' administrator address on Monday. The attacker used this access to mint 5 billion of his new GALA tokens, worth approximately $200 million at the time, and later issued 600 million of his newly minted GALA tokens on the decentralized exchange Uniswap. Successfully sold tokens.
According to CoinGecko data, this sale caused the token’s value to plummet by 20% from approximately $0.048 to $0.038. This security lapse allowed the attackers to gain approximately $29 million.
The breach was initially reported on Twitter by smart contract developer and security auditor 0xQuit.
Gala Games said it has taken steps to freeze the compromised wallets, making the remaining 4.4 billion tokens effectively unsellable and “effectively incinerated.” Schiermeyer reassured stakeholders that GALA's Ethereum contracts are protected by multi-signature wallets and are in no way compromised.
“It is important to note that $GALA’s ETH contracts are secure and under the protection of a multisig wallet. It was never compromised,” he said.
This isn't the first time Gala Games has faced an exploit. The project reportedly lost $130 million in a similar incident in 2021.
Despite the turmoil, GALA price recovered to around $0.04, influenced by a broader market rally that saw Ethereum price increase by 20%.
Ethereum soared above $3,500 on Monday after Bloomberg ETF analysts Eric Balchunas and James Seifert raised the probability of spot approval for the Ethereum ETF to 75%. Previous odds were he was 25%.
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