Gala Games executives accuse each other of stealing $130 million

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On August 31, co-founders of blockchain gaming platform Gala Games Wright Thurston and Eric Schiermeyer filed counterclaims in the Utah District Court on charges of embezzlement and embezzlement.

On behalf of Gala, CEO Schirmeyer said that in early 2021, Thurston and his investment firm True North United Investments stole about $130 million worth of GALA tokens.

According to the document, the coins were first moved to a wallet controlled by the company, but then Thurston distributed them to 43 of their addresses. He himself claims that he kept the assets in a safe place.

The defendant later allegedly withdrew the tokens again and exchanged or sold them in a “complex web of intricate transactions” between September 2022 and May 2023. Thurston is also believed to have stolen licenses to run nodes on the project’s network.

True North promptly filed a counterclaim against Schiermeyer, also on behalf of Gala. The document states that he caused “millions of dollars of company assets to be sold and embezzled” and borrowed corporate funds for personal needs.

According to the prosecution, Schiermeyer also set up Gala units in Switzerland and Dubai and became a majority shareholder to “seize business opportunities.” In addition, he provided Thurston with incomplete or incorrect information and corporate records “despite repeated requests”.

A common requirement in lawsuits is the removal of the defendant from the position of director. In addition, Thurston decided to recover $750 million from his colleague to pay damages.

Recall that in November 2022, unknown persons issued ~55.6 billion pGALA worth up to $2.2 billion on the BNB Chain network. They sold part of the assets through DEX PancakeSwap, receiving over $4.5 million.

Then the Huobi exchange accused the developers of the DeFi protocol pNetwork of “malicious behavior”. In April, both companies filed a lawsuit against the project.

In April 2023, Huobi and Gala Games developed a compensation plan for those affected by the incident.

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