$Gala Games Self-Attack Argument On $4.4M Exploit Failing: Token Bleeds As Community Grows Skeptical 14

$Gala Games Self-Attack Argument On $4.4M Exploit Failing: Token Bleeds As Community Grows Skeptical

  • Gala Games is attempting to soothe investors after it was alleged that the platform suffered an attack. The team said that no such attack or hack took place.
  • The P2E games company explained to the community that it had conducted a self-attack with the help of pNetwork to fix an issue, but the crypto community does not seem convinced.
  • One auditing firm called it an exploit and noted that $4.4 million in BSC was taken. The exploiters reportedly minted over 1 billion in GALA on BSC.

P2E gaming platform Gala Games is experiencing a fallout from some community members over a recent security incident. Reports have emerged that hackers made off with over $4 million in GALA. Holders are also seeing a massive drop in their GALA holdings, with little information as to what exactly is going on. Details are scarce, with some conflicting reports on what exactly has happened.

Jason Brink, President of Blockchain at Gala Games, said that fears of a potential billion-dollar hack or rug pull were unfounded. He pointed to an effort with pNetwork, implying that Gala had essentially carried out an attack itself on itself to fix an exploit. Specifically, pNetwork described the situation as,

“A misconfiguration of the p.network bridge necessitated the redeployment of pGALA. We’re working directly w/the Gala team and w/ exchanges to provide the necessary pGALA balances to restore the functionality of pGALA deposits & withdrawals.”

However, others have stated that a hack took place. Smart contract auditing firm QuillAudits explained that the exploiters minted over 1 billion GALA tokens on BSC. They added that the hackers generated a total of $4.4 million in BSC from the exploit.

Meanwhile, Gala and pNetwork are working on creating a new pGALA token to replace the old compromised one. The latter took a snapshot of the pool and the new token will be airdropped to holders.

Community Fuming As GALA Drops by 13%

The community members are understandably angry with what has happened. Users posted images of their liquidations and losses. Most are frustrated about the losses they have experienced. The explanation that it was a self-attack does not look like it has soothed investors’ worries, and the token continues to bleed.

As a result of the incident, the GALA token has dropped by over 13% in the past 24 hours. As soon as reports emerged, the token fell, and it has not made any significant recovery since the updates.

Gala is currently trading at around $0.03, which is a massive drop from about a month prior. The token was trading at $0.04 in late October and is down 90% from its January 2022 high of $0.45.