2024

Impact

Million

Gala

<p>The post <a href="https://coinpedia.org/news/did-gala-games-suffer-200-million-or-21-million-hack-latest-updates-on-the-attack/" rel="noopener noreferrer nofollow">Did Gala Games Suffer $200 Million or $21 Million Hack? Latest Updates on the Attack</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Gala Games had one of the most <a href="https://twitter.com/GoGalaGames/status/1792727587460104377" target="_blank" rel="noopener noreferrer nofollow">reported attacks</a> through a blockchain gaming platform on May 20 2024 leading to the unauthorized minting of 5 billion <a href="https://markets.coinpedia.org/gala/" target="_blank" rel="noopener noreferrer nofollow">$GALA token</a>.</p>
<p>The minted tokens were in total worth $200 million indicating the severity of the exploit. However, the actual value of tokens paired into <a href="https://markets.coinpedia.org/ethereum/" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a> (ETH) before intervention by Gala Games was $21 million due to an intervention that saw the Gala Games blocklisted address of the attacker.</p>
<h2 class="wp-block-heading" id="h-unfolding-the-attack"><strong>Unfolding the attack</strong></h2>
<p>It is speculated that the attacker had the necessary access to a wallet that had administrative capabilities on the Gala Games smart contract. This access enabled the attacker to mint the huge tune of 5 billion $GALA tokens. It is however true that such a large volume would be unattractive to buyers and would significantly lower the token value in the market.</p>
<h2 class="wp-block-heading" id="h-swift-response-mitigates-damage"><strong>Swift response mitigates damage</strong></h2>
<p>Eric Schiermeyer, Gala Games’ CEO, also known as Benefactor, has <a href="https://twitter.com/Benefactor0101/status/1792698768166715776" target="_blank" rel="noopener noreferrer nofollow">posted</a> on X saying that the company “has identified the compromise and within 45 minutes we have secured and removed unauthorized access to the $GALA contract. ”&nbsp;</p>
<p>They also assured people that “it’s important to note our ETH contract for $GALA is secure and under the protection of a multicurrency wallet. ” It never was compromised.</p>
<p>Just a few minutes after, the Gala Games team successfully suspended the attacker’s address, thereby terminating the token swaps. It also reduced the cost of the lost financial damage to about $21 million replaced in swapped tokens.</p>
<p>The actual amount of damage might be not as significant as it was originally assessed – the attacker only managed to sell $21 million worth of tokens from the address before it was frozen.</p>
<h2 class="wp-block-heading" id="h-market-impact"><strong>Market Impact</strong></h2>
<p>It affected the market-cap of the GALA token right from the beginning of the hack. In just two hours after the breach, the price of GALA had instantly fallen from $0. 048 to $0. 0388, a 20. 8% decline. It later went as low as $0.039 in the aftermath.&nbsp;</p>
<h2 class="wp-block-heading" id="h-ongoing-investigation"><strong>Ongoing Investigation</strong></h2>
<p>It is still not known with accuracy what kind of security incident took place. It remains to be seen whether it was a case of an insider threat or whether an external party gained access to an official administrative wallet. Gala Games fans and users remain anxiously waiting for further announcements and official responses.</p>
<p>Schiermeyer said that the FBI, the U. S. Department of Justice and a “network of international authorities” have been intervened in the invasion of the Gala Games. While the authorities work to gain back the stolen crypto, blockchain projects should have more security over their admin wallets.</p>
<p>Also Check Out: <a href="https://coinpedia.org/news/crypto-hack-report-this-week-analyzing-recent-defi-hacks-and-security-breaches/" rel="noopener noreferrer nofollow">Crypto Hack Report This Week: Analyzing Recent DeFi Hacks and Security Breaches</a></p>

Did Gala Games Suffer $200 Million or $21 Million Hack? Latest Updates on the Attack

Table of Contents

CoinPedia News

Other articles published on May 21, 2024

Arcana Network is the Next Big Thing in Crypto! Here’s How

Scarlett Johansson Mad At OpenAI For Copying Her Voice

BEFE Coin: The New Meme Coin Making Waves in the Top 100

5 Cryptos Predicted to Boom

The US SEC’s potential approval of a spot Ether ETF sparks excitement

Avalanche (AVAX) 12% Bull Rally Hits 30-Day High: Will the Resistance Hold?

Join our free newsletter for daily crypto updates!