thenewscrypto.com
- Gala Games CEO alleges $130 million theft, and license misappropriation on the co-founder.
- The price of GALA is down 5.15% in 24 hours amid legal turmoil.
In a shocking turn of events, the blockchain gaming platform Gala Games, renowned for its play-to-earn (P2E) games, is now embroiled in a legal battle, leaving the crypto community bewildered. On August 31, Gala Games’ CEO Eric Schiermeyer, and co-founder Wright Thurston filed lawsuits against each other in a Utah District Court for alleged theft.
Schiermeyer alleges that Thurston and his investment firm, True North United Investments, misappropriated approximately $130 million worth of GALA tokens linked to the Gala Games ecosystem. According to Schiermeyer, these tokens were initially held securely by Thurston but were mysteriously moved into 43 different wallets. Thurston’s explanation—that he was safeguarding the tokens for Gala—soon crumbled as he allegedly engaged in a series of obscure transactions between September 2022 and May 2023, involving the GALA tokens.
Gala Games Into the Negative Limelight
Moreover, Thurston is accused of pilfering licenses required to operate Gala ecosystem nodes, selling them, and pocketing the proceeds. Simultaneously, Thurston’s True North filed a lawsuit against Schiermeyer, asserting that he squandered Gala’s assets and diverted millions for personal use. The lawsuit claims that Schiermeyer created Gala entities in Switzerland and Dubai, essentially sidelining Thurston’s involvement in Gala’s decision-making processes.
Schiermeyer is seeking Thurston’s removal as Gala director and damages, including the return of stolen GALA tokens. On the other hand, Thurston is demanding Schiermeyer’s removal and $750 million in damages.
These lawsuits, combined with a prior legal entanglement involving the United States Securities and Exchange Commission (SEC) suing Thurston and True North for an alleged fake crypto mining scheme, have cast a dark cloud over Gala Games’ reputation.
Impact of the Lawsuits
In response to these lawsuits, the community has expressed its deep frustration. Investors and supporters are disheartened by the internal strife, with some lamenting how the ongoing legal battles are eroding confidence in the Gala platform. As one Gala investor put it, “Your tokenomics suppress the price, and now you’re all suing each other?”
Amidst this turmoil, the price of GALA token plummeted by 5.15% in the past 24 hours to $0.0168, as per CMC data. However, this ongoing turmoil positively impacted the rivals of GALA, including PYR, MYRIA, and NAKA, all of which have seen double-digit percentage gains over the past 24 hours. These platforms serve as game launchers, publishers, studios, and infrastructure providers.
If the Gala Games’ internal legal battle intensifies, the concerns mounting that the ongoing FUD (Fear, Uncertainty, Doubt) might negatively impact GALA increase.