Gala Games Founders in Court Over $130M Token Theft
There is a legal storm brewing in the Gala Games ecosystem after the project’s co-founders, Eric Schiermeyer and Wright Thurston dragged themselves to court.
The GALA Games Legal Brawl
According to filings lodged with the United States District Court for the District of Utah, Eric is accusing Thurston and his company True North United Investments, LLC of stealing a total of 8,645,014,077 GALA tokens from the company.
You can read both of the lawsuits here:
1. Gala Game's CEO Eric Schiermeyer's Lawsuit against co-founder: https://t.co/92ywN1fPnY
2. Gala Game's co-founder Write Thurston lawsuit against Gala's CEO: https://t.co/xCoFkXRkaG— Jake Browatzke 🚀 (@jakebrowatzke) September 2, 2023
As contained in the 76-page filing, Thurston was accused of deliberately initiating a “complex web of obfuscatory transactions” through which he moved, exchanged, or sold the said tokens which amounted to the said amount. As the lawsuit noted, the funds had already been moved before the company could take action.
This lawsuit comes off as one of its kind in the Web3.0 ecosystem at this time when the industry is harmonizing in such a way as to collectively fight the United States Security and Exchange Commission (SEC) in the broader bid to help usher in a comprehensive regulation for the industry.
The internal wranglings in the Gala Games project also underscore an earlier challenge the firm has been facing with the market regulator previously on the tails of Thurston and True North for the Green Boxes crypto project that is positively hinged toward energy efficiency.
The precedent for suing Thurston predates Gala Games as the suit revealed all the other crypto projects that he has been involved with most of which have faced litigation in the past. As part of the demands from the lawsuit is a broad demand for compensation for the damages caused as well as the removal of Thurston as one of the Directors of the company.
Essence of the GALA Games Native Token
Gala Games is one of the fully functional gaming hubs in the Web3.0 world. The project utilizes the GALA token for its integrated economics and it serves as a means to purchase the in-game assets as well as utilizing it as a means of exchange between players.
The lawsuit has undoubtedly suppressed the price of GALA which at the time of writing is changing hands at a price of $0.0171, down by 8% over the past 24 hours.
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