In a shocking turn of events, co-founders of Gala Games have filed lawsuits against each other, accusing corporate waste and a staggering $130 million theft. This legal battle sheds light on the inner workings of the renowned gaming company and its alleged financial discrepancies. Learn more about the intense legal showdown and its implications for Gala Games in this detailed article.
Gala Games Co-founders Sue Each Other Over Alleged Token Theft
Two co-founders of blockchain games developer Gala Games are currently embroiled in a legal battle in a Utah district court. On Thursday, Gala’s CEO Eric Schiermeyer filed a lawsuit against the company’s director, Wright Thurston, accusing him of stealing $130 million in GALA tokens. Schiermeyer alleges that Thurston moved the tokens to multiple wallets under his control and sold them in a series of complex transactions between September 2022 and May 2023.
The news of the token theft has had a significant impact on GALA’s price, with the native token of the Gala Games ecosystem falling over 5% in the last 24 hours. At the time of writing, GALA is trading at $0.01657233, according to CoinGecko.
Allegations of Corporate Misconduct and Waste
In response to Schiermeyer’s lawsuit, Thurston filed a countersuit alleging that the CEO went rogue and made transactions without seeking his input, resulting in the “sell off and waste of millions of dollars in company assets.” Thurston claims that Schiermeyer exercised unilateral control over Gala Games’ operations, assets, and profits for his personal benefit.
Both lawsuits are seeking substantial compensation and relief. Thurston’s suit asks for $750 million, accusing Schiermeyer of misusing at least $600 million from the company funds. On the other hand, Schiermeyer’s lawsuit demands the return of the $130 million GALA tokens allegedly stolen by Thurston, along with additional damages.
What is Gala Games?
Gala Games is an early participant in the Web3 gaming space, offering a diverse library of live and in-development titles. One of its notable releases is Champions Arena, a free-to-play RPG battler available on both mobile and PC, which incorporates optional NFTs. Despite the ongoing legal dispute, Gala Games continues to develop and expand its offerings.
In May 2023, Gala Games burned over $600 million worth of GALA tokens following the completion of its V2 token airdrop. The company conducted the airdrop to address concerns of a “dump and exit” scenario. GALA V2 tokens were distributed to GALA holders in a 1:1 ratio, showcasing the project’s commitment to its community.