Gala Games co-founders clash in opposing lawsuits seeking $130M, $600M in damages

In a legal battle within Gala Games, the co-founders are embroiled in opposing lawsuits with claims amounting to $130 million and $600 million in damages. The clash raises concerns about the future of this gaming company that recently gained popularity. These conflicting lawsuits highlight the internal disputes and potential financial repercussions that Gala Games must address.

Gala Games, a blockchain firm, is currently embroiled in a legal battle between its co-founders, Eric Schiermeyer and Wright Thurston. The first case, filed by Schiermeyer on August 31, accuses Thurston of stealing over 8.6 billion GALA tokens from the company’s wallets, resulting in a $130 million gain for Thurston. Additionally, Thurston is alleged to have stolen Gala node licenses and sold them for profits. Schiermeyer’s lawsuit seeks restitution for the stolen funds, compensation for damages, and the removal of Thurston from his role as director at Gala Games.

Interestingly, Schiermeyer’s lawsuit reveals Thurston’s involvement in multiple failed companies, including Green United, which led to the U.S. Securities and Exchange Commission (SEC) suing him for fraud and registration violations. The SEC’s investigation into Green United indicated that it raised $18 million through crypto-mining offers.

In response, Thurston filed his own case against Schiermeyer on the same day, accusing him of misusing Gala Games’ assets and funds without board approval. Thurston alleges that Schiermeyer burned or destroyed approximately $600 million worth of GALA tokens and shareholder assets. Additionally, Schiermeyer supposedly lent himself millions of dollars through Blockchain Game Partners, a company affiliated with Gala Games. Thurston also claims that Schiermeyer set up international firms related to Gala Games, where he acted as the controlling shareholder, despite Blockchain Game Partners’ rights.

Thurston seeks damages exceeding $600 million and the removal of Schiermeyer from his leadership roles at Gala Games.

The legal battles have had an impact on GALA token’s value. Gala Games offers NFT-based games, cryptocurrency rewards, and music and film services. It has gained prominence due to its association with VOXverse, a metaverse project developed by Will Wright, the creator of “The Sims.”

However, GALA token’s price has suffered during the legal controversy. Over the week ending on September 4, GALA experienced an 18.5% drop in value, while Bitcoin remained relatively stable with a 1.3% loss within the same period.

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