Gala Games is one of the leaders in the blockchain gaming space. However, since the beginning of this year, the GALA price declined by 67%. Remember the days when GALA went parabolic in November 2021?
In two weeks it went from $0.084287 to its ATH of $0.824837. The current piece is back at $0.01617219. So, what happened with GALA Games?
The Founders of Gala Games Are Suing Each Other to the Tune of Over $130M Theft
On 31st August 2023, the United States District Court for the District of Utah saw the filing of a lawsuit. This lawsuit showed that there are internal issues at Gala Games. The co-founders, Eric Schiermeyer and Wright Thurston filed lawsuits against each other.
$GALA going to 0?
Gala Games is one of the largest ecosystems in the Web3 industry.
Here are all the charges:
1. Asset Misallocation: Schiermeyer reportedly siphoned $600M from Gala Games for… pic.twitter.com/rieBGRptQY
— EvanLuthra.eth (@EvanLuthra) September 3, 2023
Schiermeyer’s lawsuit bases itself on a conflict of interest for Wright Thurston. He alleges that Thurston took out $130 million worth of GALA tokens. To be precise, 8.645 billion GALA tokens. This happened in 2021. Thurston did this on behalf of his investment firm, True North United. Apparently, he used 43 different wallets to funnel the funds away. These funds came from the official Gala Games token wallet. Thurston didn’t deny this but called it legal property retrieval and not theft.
Schiermeyer also alleges that Thurston kept all the profits from selling off Gala Games node licenses. These nodes process all transactions in the Gala Games ecosystem.
On the other hand, Thurston filed heavier charges against Schiermeyer on the same day. These relate to “corporate waste, conversion, and unjust enrichment”. Apparently, he used a complex strategy. This allowed him to evade going through the correct company channels. Thurston is also the director of Blockchain Game Partners (BGP). In turn, they are part of his investment company, True North United. With a 44.7% stake in BGP, True North alleges that this hurts the company.
I’ve received a number of requests asking that I reassure everyone about the current state of Gala and the lawsuits recently files by myself and Wright Thurston. The legal matters are between the two of us. The company is not a defendant in the case.
And to be very clear the…
— benefactor (@Benefactor0101) September 4, 2023
More Background Information
As it turns out, the SEC did sue Thurston and True North already in a different case. This was about ‘Green Boxes’. These are supposedly specialized crypto-mining machines. However, as it turned out, they were fake machines. This was to the tune of $18 million.
The players and developers of Gala Games can run nodes. If you own GALA tokens, you can take part in the governance of the platform. There’s a total of 50 billion GALA tokens. Currently, 25 billion tokens circulate. Of these, 50% are for the Founder’s Nodes. The other 50% is for the Gala Games Conservatorship (GGC).
Now, Thurston apparently targeted a treasury wallet held by the GGC. Earlier this year, Gala Games also upgraded their GALA token. During this process, the platform burned $600 million worth of GALA. In turn, Thurston alleges that Schiermeyer was controlling this, further damaging his firm.
We would like to provide everyone with an official statement from our General Counsel on the current legal disputes between the Co-Founders of Gala Games, Gala Film, and Gala Music.https://t.co/i6L5CNhegY
— Gala Games (@GoGalaGames) September 6, 2023
To summarize, there’s a lot of mudslinging going on. It may be that the GALA holders are being thrown under the bus here. The Gala token seems to be on a steady decline. With these lawsuits between the co-founders, the prospects don’t look good for Gala.
The current prize of the GALA token is $0.01604251. It has a market cap of $416.7 million. The max supply of GALA is 50 billion tokens, with 25 billion in circulation.
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