Gala Games Co-Founders Sue Each Other Over Millions

Unexpectedly, the two co-founders of Gala Games, a blockchain game creation firm, are now involved in legal disputes with one another. Both complaints, which were submitted to a district court in Utah, have shocked the cryptocurrency industry.

CEO Alleges $130 Million Token Theft

Eric Schiermeyer, the CEO of Gala Games, has launched a lawsuit against Wright Thurston, the company’s director. Schiermeyer accuses Thurston of stealing an incredible $130 million in GALA tokens back in 2021, which is nothing short of amazing. Thurston allegedly carried out this crime via his business, True North United Investments, which holds a large 45% share in Gala.

According to Schiermeyer, Thurston distributed the tokens around 43 different wallets after first transferring them to a business wallet. The accusation that these tokens were later traded in a complicated sequence of transactions ranging from September 2022 to May 2023 is what really shocks people.

Price Plunge Amid Legal Turmoil

This judicial turbulence has effects outside of the courtroom as well. Following the revelation, the value of GALA, Gala Games’ native token, fell precipitously. GALA has lost more than 5% in the last day and is currently trading at $0.01657233, according to data from CoinGecko.

Counterclaims and Accusations of Corporate Mismanagement

Thurston, on the other hand, has not taken these accusations lying down. He claims in his case that Schiermeyer acted without consulting him, failed to get his approval, and carried out measures that resulted in “the sell-off and waste of millions of dollars in company assets,” a legal term known as corporate waste.

According to Thurston’s lawsuit, Schiermeyer had sole authority over Gala Games’ activities, possessions, and earnings. It claims that while carrying out business on the company’s behalf, he secretly gained personal gain.

Both complaints demand that the various defendants be fired from their jobs at Gala Games and demand hefty monetary damages. Due to Schiermeyer’s alleged misappropriation of at least $600 million from the company’s cash, Thurston is suing for an astounding $750 million. In the meanwhile, Schiermeyer’s action asks for damages as well as the return of the $130 million in GALA tokens that were purportedly stolen.

Gala Games, a well-known participant in the blockchain gaming business, is navigating rough seas as the legal dispute develops. This may have huge repercussions for Gala Games’ future and the larger crypto sector.