The post office Did Gala Games suffer a $200 million or $21 million hack? Latest updates on the attack appeared first on Coinpedia Fintech News
The Gala Games had one of the most attacks reported via a blockchain gaming platform on May 20, 2024, leading to the unauthorized minting of 5 billion $GALA token.
The tokens issued were worth a total of $200 million, indicating the severity of the exploit. However, the actual value of the associated tokens Ethereum (ETH) before Gala Games' intervention stood at $21 million due to an intervention that saw Gala Games block the attacker's address.
Deploy the attack
It is assumed that the attacker had the necessary access to a wallet with administrative capabilities on the Gala Games smart contract. This access allowed the attacker to mint a whopping $5 billion in GALA tokens. It is, however, true that such a large volume would be unattractive to buyers and would significantly reduce the value of the token on the market.
Rapid response mitigates damage
Eric Schiermeyer, CEO of Gala Games, also known as the Benefactor, job on X saying the company “identified the compromise and within 45 minutes we secured and removed unauthorized access to the $GALA contract.” »
They also assured people that “it is important to note that our ETH contract for $GALA is secure and under the protection of a multi-currency wallet. “It was never compromised.
A few minutes later, the Gala Games team managed to suspend the attacker's address, thus putting an end to the token exchanges. This also reduced the cost of lost financial damage to around $21 million replaced by exchanged tokens.
The actual amount of damage may not be as great as initially estimated: the attacker only managed to sell $21 million worth of tokens from the address before it went down. or frozen.
Market impact
This affected the market capitalization of the GALA token from the start of the hack. Just two hours after the breach, GALA’s price had instantly fallen from $0. 048 at $0. 0388, a drop of 20.8%. Subsequently, it fell to $0.039.
Later, the price of the token showed a slight recovery and reached $0.042 at the time of writing, according to data from CoinGecko.
Ongoing investigation
It is still unclear precisely what type of security incident took place. It remains to be seen whether this was an internal threat or whether an external party gained access to an official administrative portfolio. Gala Games fans and users are eagerly awaiting new official announcements and responses.
Schiermeyer said the FBI, the U.S. Department of Justice and a “network of international authorities” intervened in the Gala Games invasion. As authorities work to recover stolen cryptocurrencies, blockchain projects should benefit from more security on their administrative wallets.
Also discover: Crypto Hack Report This Week: Analysis of Recent DeFi Hacks and Security Breaches