Gala Games CEO Eric Schiermeyer said that the attacker gained unauthorized access to the administrator's address. And he used this access to issue 5 billion new GALA tokens, which cost about $200 million in total at that time. The hacker was able to sell 600 million issued tokens on the Uniswap decentralized exchange. Security specialists closed unauthorized access to the GALA contract only 45 minutes after the incident began.
Measures to freeze the compromised wallet have already been taken, the remaining 4.4 billion tokens became unusable and were "actually burned," Eric Schirmeyer assured. The Ethereum contract for GALA was not compromised because it is protected by multi-signatures.
"Our internal control system has been violated. This should not have happened, and we are taking measures to ensure that this never happens again. We are currently working with the Federal Bureau of Investigation, the U.S. Department of Justice and international organizations. There is still a question about the daily distribution of tokens. We will hold a vote, and the community will decide how to proceed," the CEO wrote on Twitter.
This is not the first time Gala Games has faced the loss of tokens. Earlier, Eric Schirmeyer sued the investment company True North United, accusing it of stealing $130 million worth of GALA tokens. The head of the company Wright Thurston He denied wrongdoing, saying that Schirmeyer had embezzled assets.