The co-founders of blockchain gaming platform Gala Games are locked in court over two separate lawsuits, one alleging the theft of $130 million worth of Gala (GALA) and the other alleging corporate waste.
On Aug. 31, Gala co-founder Wright Thurston and the company’s CEO Eric Schiermeyer filed a lawsuit against each other in Utah District Court.
On behalf of Gala, Schiermeyer claimed that Thurston and his investment firm, True North United Investments, stole approximately $130 million worth of GALA — a token associated with the Gala Games ecosystem — in early 2021.
Schiermeyer’s lawsuit alleges that GALA tokens were transferred to a wallet under the company’s control, but were later transferred to 43 other wallets by Thurston, who, when confronted with the transfers, said he stored the tokens in Gala’s secure wallet.
He later transferred the tokens from the wallet and exchanged or sold them through a “complex web of obscure transactions” between September 2022 and May 2023, the suit alleges.
Thurston later feigned knowledge of the alleged token sale, but now claims that the GALA sold belonged to him, an allegation dismissed by Schiermeyer’s lawsuit, the suit says.
Thurston is also accused of stealing licenses to run Gala ecosystem nodes that earn GALA tokens — selling the licenses and keeping the proceeds.
On the same day, Thurston’s True North filed a lawsuit against Schiermeyer — also on behalf of Gala — claiming he caused Gala to “sell and squander millions of dollars in company assets” and lent Gala millions of dollars to himself For personal purchases.
Schiermeier also allegedly created Gala entities in Switzerland and Dubai and made himself the controlling shareholder to pursue business opportunities, the lawsuit said.
True North alleges that Silmeier operated the Gala without the involvement of Gala director Thurston and provided Thurston with incomplete or incorrect information and company records “despite repeated requests.”
related: SEC vs. Coinbase: New Lawyer Patrick Kennedy Joins the Fight
Schillmeier filed a lawsuit seeking the removal of Thurston Gala director and seeking various relief and damages, including the return of the allegedly stolen Gala.
Thurston is also demanding that Schirmel be removed from the Gala and seek at least $750 million in various damages and relief.
In March, the SEC sued Thurston, True North and another company he founded called Green United, alleging it sold investments in an alleged phony cryptocurrency mining scheme.
Magazine: Web3 Gamer: GTA Owners Join Web3, Bitcoin Casino, Sunflower Land Review