There has been an incident occurred at Gala Games that caused up to $200 million in damages. Hackers reportedly managed to hack into the Gala Games wallet.

The hackers allegedly stole five billion GALA worth US$200 million. As a result, GALA's price fell 15 percent. The Gala team has already responded to the incident. Those responsible wrote on the X platform that the Gala team had been able to plug the security breach. The affected wallet has since been frozen.

The security incident involving the $GALA token has been contained and the impacted wallet has been frozen.

This was an isolated incident, the cause of which has been addressed and we are working closely with law enforcement to investigate the individuals behind the breach.…
— Gala Games (@GoGalaGames) May 21, 2024

Nothing is yet known about the background of the hack. But, as blockchain developer "Quit" writes, the exploit could have been an inside job.

A compromised or rogue Gala Games admin address minted 5 Billion $GALA ($200M) and has been systematically selling the tokens for the past 2 hours.

This is why decentralization is important - I prefer "can't be evil" over "don't be evil", and design with that in mind.

Outlaw… pic.twitter.com/aZkQZ2zYi6
— Quit (@0xQuit) May 20, 2024

Gala's two founders have been at odds with each other since the summer of 2023. Eric Schiermeyer and Wright Thurston filed a lawsuit against each other in Utah District Court on Aug. 31. The case involves the alleged theft of Gala coins belonging to the company. The coins allegedly have a value of $130 million.