CEO Accuses Co-Founder of $130 Million Crypto Theft
In a shocking turn of events, Gala Games CEO Eric Schiermeyer has filed a lawsuit against his co-founder, Wright Thurston, accusing him of stealing 8.6 billion GALA tokens worth $130 million earlier this year. This legal battle between the two key figures of the GameFi Web3 startup has sent shockwaves through the cryptocurrency community.
The Alleged Theft and Financial Mismanagement
Schiermeyer’s lawsuit claims that not only did Thurston steal a substantial amount of GALA tokens, but he also has a track record of founding companies that end up insolvent, bankrupt, or involved in legal disputes. This accusation raises concerns about Thurston’s business practices and integrity.
The lawsuit was filed by Schiermeyer on August 31 and was brought to public attention by The Block. In response, Thurston has countersued, accusing Schiermeyer of taking control of Gala Games for personal gain, including using company resources to finance a private jet.
Gala Games, founded by Thurston and Schiermeyer in 2019 as a GameFi Web3 startup, has seen significant success. The company recently launched Champions Arena, a popular mobile turn-based RPG game, and also operates in the blockchain-based music, film, and digital collectibles sectors.
Token Theft Impacts Gala Games
According to Schiermeyer, the alleged theft of GALA tokens effectively held Gala Games hostage. Revealing the theft could potentially lead to a collapse of the entire GALA ecosystem. To mitigate the devastating impact, Gala Games issued new Gala v2 tokens in May 2023.
Schiermeyer claims that these updated tokens were designed to render Thurston’s stolen GALA tokens obsolete while preserving the integrity of the remaining GALA ecosystem. On the other hand, Thurston’s countersuit accuses Schiermeyer of mismanagement and self-dealing, resulting in reputational and financial damage to Gala Games worth hundreds of millions of dollars.
It’s worth mentioning that Thurston has faced previous legal issues, including a lawsuit from the US Securities and Exchange Commission (SEC) related to Green United LLC. The SEC alleged that the company deceived investors with a fraudulent “green” crypto project.
Impact on GALA Token Price
Unsurprisingly, the legal battle between the Gala Games co-founders has had a negative impact on the price of GALA. Over the past seven days, the token has experienced an 18% decline, while the past 30 days have seen a 31% drop. CoinGecko’s ranking currently places GALA as the worst-performing token among the top 100 tokens by market capitalization over the past week.
Analysts are already speculating about the possibility of the GALA token price plummeting to zero. The uncertainty surrounding the legal battle and the potential collapse of the GALA ecosystem has understandably created concern among investors and the crypto community at large.
Editor Notes: Uber Crypto News
This legal battle at Gala Games highlights the challenges and risks associated with the cryptocurrency industry. The theft of GALA tokens and the allegations of financial mismanagement have dented both the reputation and the value of the company. As the crypto space continues to evolve, it is crucial for industry participants to prioritize transparency, accountability, and ethical business practices.
For the latest news and updates on the world of cryptocurrencies, be sure to visit Uber Crypto News. Stay informed and make educated decisions in this dynamic and fast-paced industry.