Gala Games Fights Back Against $200 Million Hack, Reduces Damage to $21 Million!

On May 20, 2024, Gala Games was hit by a major attack, resulting in the unauthorized creation of a whopping 5 billion $GALA tokens, making it one of the most significant breaches in blockchain gaming history.

The attacker managed to mint tokens worth an eye-popping $200 million, highlighting the severity of the breach. However, Gala Games acted swiftly, preventing further damage and reducing the actual value of the tokens to $21 million by blacklisting the attacker’s address.

Behind the Breach: Insights into the Attack

Initial investigations suggest that the attacker gained access to a wallet with administrative privileges, allowing them to create the vast number of $GALA tokens. Despite the massive volume minted, flooding the market with such a supply likely would have devalued the tokens significantly.

Gala Games’ CEO, Eric Schiermeyer, promptly addressed the breach, assuring stakeholders that unauthorized access to the $GALA contract was swiftly neutralized within 45 minutes. He emphasized the security of Gala Games’ ETH contract, untouched due to protection from a multicurrency wallet.

Attempts at Recovery

Gala Games suspended the attacker’s address within minutes, halting further token swaps and limiting the financial fallout to approximately $21 million. Contrary to initial concerns, the attacker had only managed to offload tokens worth this amount before being stopped.

Market Fallout

The breach triggered a market frenzy, causing the GALA token’s price to plummet from $0.048 to $0.0388 within two hours, marking a significant 20.8% decline. Subsequently, the token’s value hit a low of $0.039 in the aftermath.

The Mystery Intensifies

Questions remain about the nature of the security incident, whether it originated from an insider threat or external intrusion. Gala Games’ community awaits further updates and official responses regarding the breach.

Schiermeyer disclosed that the FBI, the U.S. Department of Justice, and international authorities are investigating the Gala Games breach. Their joint efforts aim to recover the stolen cryptocurrency, emphasizing the need for blockchain projects to enhance security around administrative wallets.

Also Check Out: Crypto Hack Report This Week: Analyzing Recent DeFi Hacks and Security Breaches

Let’s build a stronger blockchain gaming community! Here’s your guide: A Comprehensive Guide to Keeping Your Crypto Safe