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Blockchain

Gala Games Suffers $200M Security Breach

One of the most prominent blockchain Gaming projects, Gala Games, was the victim of a significant security breach on May 20, 2024

By exploiting the platform, an unidentified assailant generated 5 billion GALA tokens with an estimated value of $214 million. This incident subsequently stirred the gaming and cryptocurrency communities, as it exposed the susceptibilities of decentralized systems.

In retrospect, Solidity developer 0xquit disclosed that the perpetrator mined the tokens using an administrator address. This suggests that an internal user or an external intruder may have executed the exploit. The assailant possessed the capacity to generate an additional 12 billion tokens.

However, their activities ended when the compromised IP address was on a block list. The perpetrator would require access to an additional administrator address to proceed.

The Gala Games team immediately blocked the hacker’s address in response to the breach, preventing them from selling additional tokens. This immediate response was crucial in preventing further harm.

Gala Games reaffirmed in a public statement their dedication to transparency and security.

Aside from that, they assured users that law enforcement was assisting them in locating the assailant. The chief executive officer of Gala Games, Eric Schiermeyer, expressed concern over the incident and admitted the breach of internal controls.

He stated, “Our internal controls were compromised…This is unacceptable, and we are implementing measures to prevent its recurrence. Our investigation is underway in collaboration with the FBI, DOJ, and a network of international authorities; we believe we have identified the perpetrator.

A node referendum will determine the best course of action regarding our daily distribution.

“The community will, as usual, determine our next steps.”

Gala Games Suffers $200M Security Breach

Market Consequences

The breach significantly and promptly impacted the value of GALA tokens. After the exploitation occurred, the asset’s price dropped to $0.039. This represented a 19% reduction from its daily peak.

However, as of press time, the price appeared more stable, with GALA trading at $0.04208, a daily decline of 5.13%.

Gala Games is implementing comprehensive preventative measures to mitigate the breach’s impact and avert future occurrences. The corporation observed,

“The cause of this isolated incident has been determined and resolved.” We are committed to staying informed throughout the investigation and will try to pre-empt future occurrences.”

Caleb Ogwuche

Caleb, a graduate in Biological Science, serves as a DevOps Engineer. He expertly leverages his scientific knowledge and technical prowess to deliver insightful tech content on protechbro.com.

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