Gala Games is the largest blockchain and web3 gaming ecosystems; however, its top management is accused of stealing $130 million in GALA tokens
Gala Games is facing fierce internal strife, which is a shocking development in the Web3 gaming industry. The platform's top management, including the CEO and co-founder, has gone to court. Eric Shiermeyer, the CEO, and Wright Thurston, the co-founder, are involved in the internal conflict. Gala Games is one of the largest blockchain gaming ecosystems, so the news has sent shockwaves throughout the industry. Thurston is accused of stealing $130 million in GALA tokens, while Schiermeyer is accused of gross mismanagement and corruption. GALA tokens have fallen by more than 72% since then. Furthermore, internal insecurity is undermining investor trust and jeopardizing financial stability.
Gala Games Lawsuits Details
The legal battle between Eric Shiermeyer and Wright Thurston came to light on August 31st in a Utah District Court. Shiermeyer representing Gala Games, alleges that in Q1 2021, Thurston with the help of its investment firm, True North United Investments, did a theft of around $130 million worth of GALA tokens. The theft was carried out using complex transactions that were moved out from a secure wallet to 43 different wallets by Thurston. When the company confronted Thurston about the movement, he reiterated that the tokens were in a safe wallet. After that, he moved the tokens out of the wallets and did a series of complicated transactions, including sales and exchanges, that took place from September 2022 to May 2023.
Additionally, it was said that at first, Thurston pretended not to know about the alleged token sales. However, later on, he claimed ownership of the sold GALA tokens. Schiermeyer's lawsuit went against this claim.
Also, Thurston is accused of taking licenses needed to run Gala ecosystem nodes, which can make GALA tokens, without paying for them. It was said that he sold these licenses and kept the money for himself.
Allegations on Gala Games’ CEO Eric Shiermeyer
On the same day, Thurston's company, True North, also filed a lawsuit against Schiermeyer on Gala's behalf. In this countersuit, Schiermeyer is accused of causing Gala to sell and waste millions of dollars worth of company assets and of borrowing millions of dollars from Gala to spend on himself.
The lawsuit also alleges Schiermeyer of setting up Gala companies in Switzerland and Dubai. There he was the controlling shareholder so that he could start businesses there. Furthermore, True North says that Schiermeyer ran the Gala on his own. The decisions were taken without asking Thurston, who is a director of Gala. Besides, True North also says that Schiermeyer gave Thurston information and business records that were either incomplete or wrong, even though he was asked for them many times.
Now, both top-tier leaders are seeking the removal of each other besides other relief and damages, and the return of Gala tokens.
On the other hand, Thurston is also seeking to offload Schiermeyer from Gala Games. Moreover, he is suing for at least $750 million in damages and other forms of relief.
The lawsuit gives more information about Wright Thurston's troubled past. It highlights his working with companies that have had legal problems, financial problems, or even gone bankrupt. Thurston has had problems with the Securities and Exchange Commission (SEC) in the past, where the United States Securities and Exchange Commission (SEC) sued Thurston, True North, and Green United, another business he started, in March. The SEC said that they were part of a scheme to sell investments in a supposedly fraudulent way to mine cryptocurrency. It makes people wonder about his business ethics and how he runs his business. He has also been involved in a number of failed projects, some of which were in the controversial field of multi-level marketing.
What to Expect?
Gala Games is a popular and well-established web3 gaming ecosystem with multiple top games in the market. Games like Champions Arena, Grit, Spider Tanks, Mirandus, and more make it a fully functional platform. The GALA token is at the heart of this project and is a key part of the way its economy works on the whole platform. The GALA token is both a way to get things in the game and a way for players to trade with each other.
However, the recent lawsuit has damaged the price of GALA. By early September 2023, GALA had lost 72% of its value since January, when it was at its highest point. It was getting close to its all-time low. However, it's important to note that this drop has been caused by larger market forces that affect cryptocurrencies like Bitcoin and Ethereum. Besides, it's also true that the legal disputes have added a layer of uncertainty for Gala Games. This has made investors and other people with a stake in the company question its stability and its plans for the future.
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Frequently Asked Questions (FAQ) About Gala Games and Its Current Situation
1. What is Gala Games?
- Gala Games is a prominent blockchain and web3 gaming ecosystem known for hosting various popular games, including Champions Arena, Grit, Spider Tanks, and Mirandus. It utilizes the GALA token as a crucial part of its in-game economy.
2. What is the current situation with Gala Games?
- Gala Games is currently facing an internal dispute involving its top management. CEO Eric Shiermeyer and co-founder Wright Thurston are at the center of a legal battle with accusations of misconduct, including the alleged theft of $130 million worth of GALA tokens.
3. What are the allegations against Wright Thurston?
- Wright Thurston is accused of orchestrating the theft of approximately $130 million in GALA tokens during Q1 2021. He is also accused of acquiring licenses for Gala ecosystem nodes without payment and subsequently selling these licenses for personal gain.
4. What allegations are made against Eric Shiermeyer?
- Eric Shiermeyer is accused of mismanagement, causing Gala Games to sell and waste valuable company assets. He is also alleged to have borrowed millions of dollars from Gala for personal expenditures and set up Gala-related companies without proper consultation.
5. How did the legal disputes come to light?
- The legal disputes between Shiermeyer and Thurston were filed in a Utah District Court, becoming public on August 31, [year].
6. What is the impact of these disputes on GALA token's value?
- The value of the GALA token has experienced a significant drop, losing 72% of its value since January [year]. However, it's important to note that this decline is influenced by broader cryptocurrency market trends, alongside the uncertainty introduced by the legal disputes.
7. What is the future outlook for Gala Games?
- The ongoing legal disputes have raised concerns about Gala Games' stability and future plans. Investors and stakeholders are closely monitoring the situation for further developments.
8. Are there any previous legal issues involving Wright Thurston?
- Yes, Wright Thurston has a history of involvement in businesses with legal and financial issues. He has also been subject to disputes with regulatory authorities, including the Securities and Exchange Commission (SEC).
9. How can I stay updated on the Gala Games situation?
- You can follow reputable news sources, official Gala Games announcements, and discussions in online communities related to blockchain and gaming to stay informed about the latest developments.
10. Is there any resolution expected for these disputes?
- Both Eric Shiermeyer and Wright Thurston are seeking relief and the removal of each other from Gala Games. The legal process will determine the outcome, but it may take time for the disputes to be resolved.