The as-yet-unidentified attacker Monday's $240 million Gala Games token abuse returned Ethereum (ETH) benefited from the sale of some of its tokens as Gala considers how to deal with the fallout from the attack and lingering questions.
Approximately 5,913 ETH, or approximately $22 million, was paid out. Sent back from attacker's wallet It was transferred to the Gala wallet on Tuesday morning, representing the funds earned from selling 600 million GALA tokens on the decentralized exchange. uniswap Shortly after Monday's attack.
On Gala's Discord server on Tuesday, CEO Eric “Benefactor” Schiermeier said the company would “probably buy and burn” GALA tokens using the recovered ETH, but the move Monday's sharp selloff could push up the token's price.
On Monday, Schielmeier said in a Discord announcement that the crypto gaming startup believes it knows who is behind the attack and is working with authorities to bring the attackers to justice. The person in question has not yet been made public, and Gala Games has declined to comment beyond its published statement.
gala Blog post published The company detailed the attack and its response on Tuesday. Wallets with administrative access to the GALA token minting contract minted 5 billion GALA tokens on Monday, worth roughly $240 million at the time of the exploit, and began selling them on the open market.
After about 45 minutes, Gala was able to block further sales by the wallet, thanks to a feature built into the v2 contract upgrade from last fall. The attacker was able to sell 600 million GALA tokens before that happened, during which time the price of GALA fell by 20% as the market scrambled with a flood of tokens.
“We want to assure our community that $GALA’s mint functionality on GalaChain is secure and uncompromised,” the post reads. “Our internal controls and multisig security protocols are designed to protect against incidents like this, and we continually strengthen them to stay ahead of potential threats.”
But while the company insists the deal is secure, Schiermeyer wrote on Monday that Gala had “failed” in accessing such features.
“We messed up our internal controls…This should never have happened, and we are taking steps to ensure it never happens again,” he said Monday.
What happens to the remaining 4.4 billion GALA tokens? This represents almost 9% of the total supply of 50 billion GALA tokens and currently remains frozen in the attacker's wallet. Schiermeyer wrote Monday that they would be considered “effectively incinerated” because they cannot be accessed or used.
In other words, they are considered removed from circulation in the Gala ecosystem. However, it now appears that Schielmeyer's classification was premature and the community of Gala network nodes and his operators will be given the opportunity to vote on the issue.
“A new Founders Node Ecosystem Governance Vote will determine whether blocklisted GALA will be burned in conjunction with GALA's dynamic supply allocation model. Gala Ecosystem Blueprint” the post reads.
Edited by Ryan Ozawa.
