Gala Games Hacker Returns $23M in ETH; Founder Proposes ‘Buy and Burn’

As a researcher with experience in the blockchain and cryptocurrency industry, I find this turn of events at Gala Games both intriguing and unexpected. The hacker’s decision to return the exploited ether tokens worth around $23 million is certainly an unusual outcome.According to on-chain records and information shared in Gala Games’ Discord channel, a hacker has transferred approximately $23 million in Ethereum (ETH) tokens to Gala Games following Monday’s incident where the hacker minted and subsequently sold an immense amount of GALA tokens.

As a crypto investor, I can tell you that an unexpected turn of events has resulted in Gala, the project I’m involved with, receiving approximately $23 million worth of ETH tokens as a windfall. Our CEO, Eric Schiermeyer, also known as Benefactor, announced this news in our Discord server, stating that we will most likely use these Ethereum tokens to buy GALA tokens through galaswap and then retire those tokens from circulation. In simpler terms, we plan on using the ETH to purchase more GALA tokens and subsequently removing them from the market.

As a researcher exploring the world of blockchain gaming, I’ve come across an intriguing platform called Gala Games. This innovative system hosts a collection of video games where players own unique NFTs (Non-Fungible Tokens) and other crypto assets. The platform’s currency is the GALA token, which facilitates transactions in the buying and selling of in-game items.

One day after an unidentified person took advantage of Gala’s internal controls to produce approximately 5 billion new GALA tokens, they offloaded 600 million of those freshly minted tokens onto decentralized trading platforms, earning around 6,000 Ether (ETH) in return. On Tuesday, the wallet linked to the hack transferred all its acquired ETH to a wallet owned by Gala Games.

As an analyst, I would express it this way: The exploit led to a significant price decrease of approximately 19% for GALA on Monday, instigated by trader concerns regarding the repercussions of heightened supply circulation and the selling pressure exerted by hackers.

Yesterday, DFW Labs, an investor in Gala, announced that they acquired 28 million GALA tokens with the intention of easing selling pressure within the market.

GALA was trading around $0.43 at press time, still off of yesterday’s pre-hack heights.