thenewscrypto.com
- Gala Games demands $27.7 million from pNetwork for out-of-pocket expenditures.
- The GameFi project claimed the alleged breach cost the company more than $25M.
In a lawsuit filed on March 20th, Gala Games, developer of the GameFi project, said it had recently sued pNetwork, the cross-chain interoperability bridge it had been using on the $BNB Smart Chain. When an illegitimate wallet address mined over $2 billion in $GALA and dumped it on PancakeSwap in November 2022. It drained $4.5 million from the liquidity pool and caused a significant drop in the price of $GALA tokens.
The lawsuit read:
“The lawsuit states that (i) pNetwork admitted that it mistakenly leaked a governance key when deploying this pGALA bridge, which such key was later used by an attacker to breach the pGALA contract on the $BNB chain.”
Alleged Breach Costed Over $25M
According to the lawsuit, pNetwork’s “negligence and tortious interference” caused the occurrence. On November 7th, 2022, SlowMist, a blockchain analytics platform, said that the problem may have been caused by the exposure of a plain text private key in one of three pNetwork-affiliated smart contracts on Gala. According to SlowMist, the compromised private key was hosted on GitHub.
On the other hand, pNetwork stated:
“As the pNetwork team, we would like to express our genuine surprise and concern upon hearing the recent announcement by the $GALA Games Project to sue pNetwork. We would like to clarify that, three months ago, we had already submitted a comprehensive report to the Swiss authorities detailing the entire incident.”
Gala Games demands $27.7 million from pNetwork for out-of-pocket expenditures related to the breach, extra compensation for injuries, punitive damages, and other remedies, claiming the alleged breach cost the company more than $25 million.
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