The Gala Games hacker quickly liquidated over $21 million worth of $GALA tokens to Ether resulting in notable panic selling.
Gala (GALA), a web3 ecosystem powered by GalaChain Layer One, has announced a major network hack that involved 5 billion tokens. According to on-chain data, the Gala exploiter quickly dumped nearly 600 million $GALA tokens worth around $21.8 million before the team froze the remaining units. The Gala exploiter exchanged the stolen $GALA units for Ethereum (ETH) on the Uniswap V3 through several transactions.
As of this writing, the Gala exploiter wallet holds $GALA tokens worth about $183 million, which are already frozen by the Gala team. Meanwhile, the Gala team has indicated that it is working with international law enforcement including the DoJ, and FBI to identify and apprehend the perpetrator.
“We identified the compromise and within 45 minutes we secured and removed unauthorized access to the $GALA contract. It’s important to note our ETH contract for $GALA is secure and under the protection of a multi-sig wallet. It was never compromised. We messed up our internal controls. This shouldn’t have happened and we are taking steps to ensure it doesn’t ever again,” the Gala team noted.
Having impacted the daily distribution of GALA tokens, the team informed the community that a node vote would be conducted to handle the issue. The Gala team indicated that the network attack was isolated but has fully been addressed.
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
Market Impact on the Gala Ecosystem
Following today’s Gala exploit, the native token dipped over 5 percent in the past 24 hours to trade around $0.04147 on Tuesday. According to our latest crypto market data, the GALA token had registered a nearly 500 percent spike in daily average traded volume to about $788 million.
Moreover, the Gala exploiter dumped nearly 600 tokens amid the ongoing crypto bullish breakout, thus chasing potential buyers.
The mid-cap altcoin, with a fully diluted valuation of about $1.57 billion, has registered a notable spike in whale trading volume in the past 24 hours. The GALA/WETH pool has about 135 Ether units worth about $497k, indicating more selling pressure for the altcoin.
Nonetheless, the Gala ecosystem has grown to a vibrant entertainment space with its latest product including the RZR series in its film category. The film company has other five projects in the pipeline, all expected to be released in the near term.
Gala Music also has attracted notable attention from global artists led by Snoop Dog among others. As for the Gala Games, dozens of GamiFi projects have already been released, which have helped onboard millions of users to the GalaChain.
Some of the notable Gala Games include Spider Tanks, Last Expedition, Echoes of Empire, GRIT, and the Walking Dead Empires, among others.
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