Gala (GALA) co-founder Eric Schiermeyer reveals the genesis of an exploit that led to the loss of crypto assets worth millions of dollars on the blockchain-based gaming platform.
Schiermeyer says a security incident prompted the “unauthorized SALE of 600 million ($21 million) GALA tokens and the effective BURN of 4.4 billion tokens.”
According to Gala’s co-founder, securing and removing unauthorized access to the web3 gaming platform built on the Ethereum blockchain was initiated and completed in less than an hour.
“It is important to note that our Ethereum contract for GALA is secure and protected by a multi-signature wallet. It was never compromised.
We botched our internal controls… This should not have happened and we are taking steps to ensure this never happens again.”
Schiermeyer further says that the identity of the perpetrator may now be known and that the blockchain-based gaming platform is working with the US Federal Bureau of Investigation (FBI), the US Department of Justice (DOJ) and a “network of international authorities”.
According to a pseudonymous developer who reportedly first discovered the exploit, the hacker who gained administrative rights to the Web3 gaming platform’s smart contract minted billions of Gala tokens before selling some of them.
“There is a cap [on the number of GALA tokens that can be minted]but an additional 12 billion tokens can still be minted before that limit.
The attacker’s address is on the block list, so he can no longer sell or mint unless he has access to another administrative address.”
GALA is trading at $0.0411 at the time of writing, down about 5% in the last 24 hours.
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Generated image: Midjourney