CEO Accuses Co-Founding father of $130 Million Theft
Gala Video games CEO Eric Schiermeyer has filed a lawsuit towards the corporate’s co-founder, Wright Thurston, alleging the theft of 8.6 billion GALA tokens value $130 million in early 2021.
Along with alleging theft, the lawsuit claims that Thurston has a historical past of founding firms that find yourself bancrupt, bankrupt, or in litigation.
Schiermeyer’s lawsuit was filed on August 31, and reported on by The Block on Sunday.
In response to Schiermeyer’s submitting, Thurston has filed his personal lawsuit, accusing Schiermeyer of taking management of Gala Video games for private use, together with for the financing of a non-public jet.
A so-called GameFi Web3 startup, Gala Video games was co-founded by Thurston and Schiermeyer in 2019, with every holding a 50% possession stake.
The corporate just lately launched Champions Area, a cell turn-based RPG recreation, and likewise operates in blockchain-based music, movie, and digital collectibles.
Token theft held firm hostage
Schiermeyer alleges that Thurston’s theft of GALA tokens in impact held Gala Video games hostage, since going public with the theft may probably result in a collapse of your complete GALA ecosystem.
To mitigate the state of affairs, Gala Video games issued Gala v2 tokens in Might 2023.
Nonetheless, Schiermeyer claims the tokens had been designed to make Thurston’s GALA tokens out of date whereas conserving the remainder of the ecosystem intact.
Thurston’s lawsuit, in return, accuses Schiermeyer of mismanagement and self-dealing in a approach that broken Gala Video games’ repute and belongings to the tune of “tons of of thousands and thousands of {dollars}.”
Notably, Thurston has confronted authorized points earlier than, together with a lawsuit from the US Securities and Trade Fee (SEC) associated to Inexperienced United LLC, which allegedly misled buyers right into a fraudulent “inexperienced” crypto venture.
Possible on account of the lawsuits, the worth of GALA has fallen by some 18% up to now 7 days days and 31% up to now 30 days, and a few analysts are already asking if the GALA value may go to zero.
Ranked 85 by market capitalization, the token is the worst performer among the many high 100 tokens by market cap on a 7-day foundation, per CoinGecko’s rating.
