Recovered $23M in Eth; Gala Games Plans Token Buy and Burn

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The individual behind the hack of Gala Games last week was back to refunding almost 5,950 ETH, worth approximately $22. 75 million. This came after a recent security incident involving a loss of $200 million worth of crypto in relation to its native GALA tokens.

On Monday, an unknown attacker targeted Gala Games and taking advantage of a weakness in the firm’s internal processes, was able to create 5 billion new GALA tokens out of thin air. 

By selling 600 million of these tokens on decentralized exchanges, they earned about 6,000 ETH roughly 21 million USD. 

Return of funds and GALA’s response

Tracing the transactions made on Tuesday, it emerged that all the ETH had been transferred to a Gala Games wallet. Explained to the public about the confirmation of the receipt of the funds in the Gala Games Discord server by CEO Eric Schiermeyer, popularly known as Benefactor, who introduced the concept of a “buy and burn” model. 

This requires the returned ETH to be used in purchasing GALA tokens and then transferring or burning them out of circulation for the objective of steadying the token.

“On Galaswap, we will most likely buy and burn,” Schiermeyer highlighted  and underlined that Gala’s main focus is to preserve the value and the tokens’ purity. 

Market impact and investor participation

Subsequently, Gala investor DWF Labs stepped in to buy 28 million GALA tokens to reduce the extent of selling in the market. This helped the token recover toward $0.045, albeit less than that observed before the hack incident.

Thinking about Gala Games’ daily distribution issue further, the project has offered its community a node vote to decide further action. This is underpinned by Gala’s consideration for its stakeholders and its relatively unmasked business model.

Fortunately, Gala Games has been able to regain a large number of stolen funds and it is taking strict measures to restore people’s trust in the project. 

The buy and burn concept and other strategies proposed by the community, as well as the interest of DWF Labs and other investors, prove the responsibility of the crypto community and their readiness to protect their investments and prevent manipulations affecting the market.

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