Gala Games Founders in Court Over $130M Token Theft.

The Gala Games founders clash in court with two lawsuits. one alleging the theft of $130 Million worth of GALA and the other alleging corporate waste.

Gala Games Founders in Court Over $130M Token Theft.

In a surprising turn, Gala Games co-founders Eric Schiermeyer and Wright Thurston find themselves entangled in a legal battle. According to court filings submitted to the United States District Court for the District of Utah, Eric has accused Thurston and his company, True North United Investments, LLC, of stealing a staggering 8,645,014,077 GALA tokens from Gala Games.

The 76-page lawsuit alleges that Thurston orchestrated a complex web of obfuscatory transactions to move, exchange, or sell the tokens without the company’s knowledge. By the time Gala Games discovered the theft, the funds had already been transferred, leaving them unable to take immediate action. This lawsuit represents a unique case within the Web 3.0 ecosystem, as the industry is currently uniting to collectively combat regulatory challenges from the US Securities and Exchange Commission (SEC) and push for comprehensive regulations.

This legal dispute sheds light on previous challenges faced by Gala Games. The project has previously faced scrutiny from regulatory bodies due to Thurston and True North’s involvement in the Green Boxes crypto project, which focuses on energy efficiency. The lawsuit also reveals that Thurston has been implicated in various crypto projects that have faced litigation. The lawsuit seeks compensation for damages and demands Thurston’s removal as one of the company’s directors.

Gala Games is a prominent player in the Web 3.0 gaming space, offering a fully functional gaming hub. The project operates using its native token, GALA, which facilitates in-game asset purchases and acts as a medium of player exchange. However, this lawsuit has had a detrimental impact on GALA’s price, which has dropped by 8% in the past 24 hours, currently trading at $0.0171.

The implications of this lawsuit are significant for Gala Games and the broader Web 3.0 ecosystem. Internal conflicts within a project can undermine investor trust and hinder its growth. Gala Games’ ability to navigate this legal storm will be crucial for its future success.

It is worth noting that the GALA token theft lawsuit comes when the crypto industry strives for legitimacy and regulatory clarity. While Gala Games battles its internal legal issues, the wider community is working to establish a regulatory framework to support the industry’s growth and protect investors. This lawsuit serves as a reminder that governance and transparency are paramount, even within a nascent industry.

The outcome of this legal dispute will undoubtedly have repercussions for Gala Games and its stakeholders. How the court will rule on the allegations against Thurston and True North remains to be seen. In the meantime, the Gala Games team will have to navigate this challenging situation while continuing to build and develop their gaming ecosystem. As the Web 3.0 space matures, it is imperative for projects to maintain integrity and address internal issues promptly to ensure the long-term success of the ecosystem as a whole.

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