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$22 Million in Crypto Stolen From Gala Games Blockchain Platform
More than $22 million worth of cryptocurrencies were stolen from the Gala Games this week after someone compromised the blockchain platform.
The company confirmed it dealt with a security incident on Monday night, writing on social media that it was an “isolated incident, the cause of which has been addressed.”
“We are working closely with authorities to investigate the individuals behind the breach,” the company said he said, noting that it will provide updates as the investigation continues. Gala Games is a play-to-earn platform that rewards users with its own digital currency.
Eric Schiermeyer, the founder of Gala Games, explained on his own social media post that the hacker was able to replacement 600 million GALA coins for 5,913 Ethereum – totaling around $22.2 million.
The hacker managed to create even more GALA coins – around 4.4 billion – but the person’s account was frozen by the platform before they could withdraw the rest of the stolen loot.
“I always knew there was a reason I never talked shit about other projects being hacked… I’m sorry to say that we had an incident that resulted in the unauthorized SALE of 600 million (21 million USD) of $GALA tokens and the actual BURN 4.4 billion tokens,” said Schiermeyer. When tokens are “burned,” it means they can no longer be sold or used in other transactions.
“We identified the compromise and within 45 minutes we secured and removed unauthorized access to the $GALA contract,” he added.
Schiermeyer also said that the attack happened because the platform’s internal controls were “messed up” and the company identified the perpetrator. . They are working with the FBI, the US Department of Justice and “a network of international authorities” on the incident.
Various blockchain security detectives he said The problem started when someone managed to take over an administrative account and mint an infinite amount of new coins.
Schiermeyer is best known for co-founding Zynga, a large gaming company behind popular online games like FarmVille.
Gala Games was created in 2019, presenting itself as the first blockchain gaming platform.
Similar platforms have been frequently targeted by hackers. About $320,000 in Binance Coin (BNB) was stolen from the play-to-earn cryptocurrency game WonderHero.
One of the biggest cryptocurrency hacks on record – involving the popular blockchain game Axie Infinity – saw more than US$600 million diverted from the platform in 2022.
The US Treasury Department attributed the Axie Infinity incident to North Korean government operators, who stole billions from cryptocurrency companies in the last three years.
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