In a surprising turn of events, the CEO of Gala Games, Eric Schiermeyer, has filed a lawsuit against his co-founder, Michael McCarthy. This legal battle between the two gaming industry veterans has caught the attention of the online gaming community. The lawsuit alleges various violations and breaches, leading to an acrimonious split in the company. As a popular blockchain gaming platform, Gala Games has gained a significant following, and this lawsuit has raised concerns about the future of the platform. Stay tuned for further updates on this high-profile legal dispute.
**Title 1: Gala Games Faces Legal Battle as CEO Alleges Misappropriation of Funds**
**Title 2: Co-Founder Controversy Plunges Gala Games into Turmoil**
An unsettling turn of events has unfolded at Gala Games, a prominent startup in the Web3 gaming industry. The company’s CEO, Eric Schiermeyer, recently filed a lawsuit against his co-founder, Wright Thurston, accusing him of misappropriating funds. This legal dispute has not only resulted in a 13% decrease in the value of Gala Games’ token but has also raised serious concerns about the integrity of the company.
Schiermeyer initiated the lawsuit on August 31st, alleging that Thurston secretly diverted a staggering 8.6 billion GALA tokens for personal gain. Shockingly, Thurston purportedly sold these tokens for around $130 million without the knowledge or consent of Gala Games. This clandestine action by one of the company’s co-founders has sent shockwaves throughout the industry, leaving investors and stakeholders deeply concerned.
In a twist of events, Thurston responded by countersuing Schiermeyer. He accused the CEO of misusing Gala Games’ funds for personal luxuries, such as purchasing a private jet. This dramatic escalation further exposes the deep rift between the co-founders and raises questions about the overall stability of the company.
Although the focus of the legal battle has been on the two co-founders, it is notable that no mention has been made of the third co-founder, Michael McCarthy. Gala Games, which was established in early 2019, made significant strides in the industry, incorporating innovative elements like the Champions Arena mobile game and venturing into blockchain-focused music, film, and digital collectibles. However, this legal controversy threatens to overshadow their past achievements and divert attention away from their ambitious projects.
Schiermeyer’s lawsuit unveils a disturbing pattern of financial improprieties allegedly committed by Thurston. The CEO claims that Thurston has been involved in multiple companies embroiled in legal battles, bankruptcy, and insolvency, with some facing lawsuits by the Securities and Exchange Commission (SEC). Schiermeyer maintains that Gala Games is the only entity associated with Thurston that operates legitimately, implying that exposing the fraud could have catastrophic consequences for the GALA ecosystem.
To address the issue, Gala Games released Gala v2 tokens in May 2023. These tokens were heavily promoted as an improved version with enhanced security features and future scalability. Schiermeyer clarified that the primary purpose of these tokens was to render Thurston’s GALA tokens useless without disrupting the wider Gala Games ecosystem.
According to the lawsuit, a significant portion of Thurston’s GALA tokens were deposited in centralized exchanges during this time. Allegedly, Thurston proceeded to sell these tokens for a profit exceeding $130 million, initially claiming that the funds would be used for purchasing firearm ammunition before disappearing from the public eye. The lawsuit also references Thurston’s involvement in other multi-level marketing (MLM) companies that negatively impacted numerous investors. Additionally, there is another lawsuit filed against Thurston by Blox for the alleged destruction of equipment worth $200 million, which he allegedly failed to rectify. Furthermore, Thurston was implicated in the Paycheck Program fraud.
Thurston’s counter lawsuit places the blame on Schiermeyer, claiming that his actions and decisions led to Gala Games’ downfall and substantial losses incurred by the company.
In a separate legal matter, the SEC filed a lawsuit against Thurston’s founding company, Green United, accusing it of misleading investors into depositing $18 million into a fraudulent crypto business. The SEC alleges that a promoter named Kristoffer A. Krohn promoted the idea of purchasing miners and nodes supported by the ERC-20 GREEN token, which, in reality, did not exist. Both defendants have appealed the SEC lawsuit, challenging its jurisdiction.
The ongoing legal battle between the co-founders of Gala Games has cast a shadow of uncertainty over the future of the company. The repercussions of this dispute extend beyond Gala Games itself, affecting investors, partners, and the wider Web3 gaming community. As stakeholders anxiously await the resolution of this contentious issue, the integrity of Gala Games hangs in the balance, and its road to recovery remains uncertain.