Home Editor's Pick $200 Million Hack: Gala Games Urges Token Holders to Migrate to V2 Contract

$200 Million Hack: Gala Games Urges Token Holders to Migrate to V2 Contract

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On May 20, 2024, Gala Games, a prominent blockchain gaming platform, experienced a significant security breach.  The incident involved the unauthorized minting of 5 billion GALA tokens, with a total value of approximately $200 million.

While the full extent of the damage is still being assessed, initial reports suggest that the attacker managed to sell 592 million GALA tokens for 5,952 ETH, equivalent to roughly $21.8 million, before Gala Games took action to blacklist the hacker’s address.

TLDR

Gala Games suffered a security breach on May 20, 2024, resulting in the unauthorized minting of 5 billion GALA tokens worth approximately $200 million.
The attacker managed to sell 592 million GALA for 5,952 ETH (roughly $21.8 million) before Gala Games blacklisted the hacker’s address.
Gala Games is collaborating with law enforcement agencies to investigate the incident and track down the perpetrators.
The company has called for all GALA token holders to migrate to the new V2 contract immediately, as the V1 contract is set to expire at midnight UTC.
Following the hack, the price of GALA dropped by more than 20%, from $0.048 to $0.038, but has since partially recovered to $0.041.

In response to the breach, Gala Games has called for all GALA token holders to migrate to the new V2 contract immediately. This urgent measure is crucial, as the V1 contract is set to expire at midnight UTC.

The company has provided detailed instructions for the migration process and emphasized the importance of completing the transfer before the old contract is decommissioned to avoid potential financial losses.

Gala Games CEO Eric Schiermeyer expressed regret over the incident, acknowledging that internal control failures allowed the exploit to occur.

He assured the community that the compromise was identified and secured within 45 minutes and that the company is taking necessary steps to prevent future incidents

Schiermeyer also confirmed that Gala Games is collaborating with the FBI, the U.S. Department of Justice, and a network of international authorities to investigate the breach and track down the perpetrators.

The incident has raised concerns about the security of blockchain gaming platforms and the vulnerability of smart contracts to exploitation.

Solidity developer 0xquit noted that the address responsible for the exploit had admin-level clearance, enabling it to perform arbitrary actions involving the smart contract.

A compromised or rogue Gala Games admin address minted 5 Billion $GALA ($200M) and has been systematically selling the tokens for the past 2 hours.

This is why decentralization is important – I prefer “can’t be evil” over “don’t be evil”, and design with that in mind.

Outlaw… pic.twitter.com/aZkQZ2zYi6

— Quit (@0xQuit) May 20, 2024

This latest hack has sparked discussions about the need for more stringent security measures and the potential risks associated with contracts that grant admin privileges capable of arbitrary token minting.

Following the hack, the price of GALA experienced a sharp decline, plummeting from $0.048 to $0.038 within two hours, marking a drop of more than 20%.

However, the token has since partially recovered, trading at $0.041 at the time of writing.

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