Following yesterday’s security breach, Gala Games announced that the stolen funds had been recovered as Ethereum (ETH).
The Gala Games team said they would use Gala Swap to convert the ETH back to their native token, GALA.
DWF Labs Buys 28 Million GALA as Part of Hack Recovery
Jason Brink, President of Blockchain at Gala Games, shared a link to the on-chain data of the stolen fund return transaction. According to the data, the address labeled as Gala Games Exploiter has returned 5,913 ETH, worth approximately $22.37 million with the current price.
Read more: Top 5 Flaws in Crypto Security and How To Avoid Them
The Gala Games team has also shared a detailed explanation of the incident. They said they immediately activated the blocklist protocol after detecting the suspicious transfer of $200 million in GALA tokens.
As a result, they froze all tokens in the unauthorized wallet 45 minutes after the breach. The team claims that such measures allowed them to minimize the impact of the incident.
“This was an isolated incident on the Ethereum network. […] A new Founder’s Node ecosystem governance vote will soon decide if the blocklisted GALA will be considered burned as it relates to GALA’s dynamic supply distribution model as described in the Gala Ecosystem Blueprint,” they explained.
Gala Games reassured the community that GALA’s minting capabilities on GalaChain remain secure. They also promised to continuously enhance internal controls and security protocols to protect against such incidents.
Additionally, they plan to reimburse anyone subjected to high transactional fees due to the incident. However, they have not detailed their reimbursement plans further.
As part of recovery efforts, Gala Games received help from crypto market maker DWF Labs—one of their partners. DWF Labs announced they purchased 28 million GALA tokens on the open market. Assuming 1 GALA is valued at $0.043, DWF Labs’ acquisition is roughly worth $1.2 million.
DWF Labs outlined that this action aimed to stabilize the token’s value and support Gala Games during these challenging times. This transaction also intends to alleviate market selling pressures and boost investor confidence.
Read more: Gala (GALA) Price Prediction 2024/2025/2030
BeInCrypto previously reported that GALA’s price plunged from $0.047 to $0.038 following the hack. However, DWF Labs’ backing and the Gala Games team’s mitigation approaches boosted the market. At the time of writing, GALA’s price has recovered to $0.044, representing an increase of 5.46% in the last 24 hours.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
