Gala Games CEO Eric Schiermeyer has launched legal action against his co-founder Wright Thurston and his investment firm True North United Investments. Schiermeyer claims that roughly $130 million worth of GALA tokens were stolen in early 2021, setting the stage for a contentious legal showdown.
Schirmel’s lawsuit It is claimed that GALA tokens were initially transferred to wallets under the company’s control. However, things took a nefarious turn when Thurston allegedly moved the coins to 43 different wallets. When asked about these actions, Thurston claimed that he was protecting the tokens for Gallas’ benefit.
However, according to Schiermeyer’s lawsuit, Thurston ended up moving the tokens again, in a convoluted series of transactions between September 2022 and May 2023.
Breaking news: Gala Games, one of the largest ecosystems in the web3 gaming industry, is facing internal conflict as two co-founders file lawsuits against each other.
— Jake Brawatzke ? (@jakebrawatzke) September 2, 2023
Gala Games in disarray over complex web of deals
Suits paint a vivid picture Thurston’s alleged activities, describing them as “complex webs of chaotic transactions.” This suggests that Thurston may have deliberately covered up the token movement to avoid detection and accountability. Schiermeyer believes that Thurston’s actions violated Gala Games’ interests and trust in him as a co-founder.
In response to the allegations, Thurston launched his own legal offensive. True North United Investments is suing Schiermeyer on behalf of Gala Games, accusing him of causing the company to “sell and squander millions of dollars in corporate assets.” The lawsuit further alleges that Schillmeier borrowed millions of dollars from Gallas for personal purchases, prompting allegations of financial impropriety.
GALA currently priced at $0.0164 on the daily chart: TradingView.com
True North claims that Schiermeyer ran Gala Games without seeking advice from Thurston, who was Gala director. Additionally, Thurston alleges that, despite repeated calls for greater transparency, Schiermeier provided incomplete or false information and company records.
Market reaction and drop of GALA token
As the legal matter unfolds, GALA token holders and the broader crypto community are closely monitoring developments. Coin Gecko According to the report, the current price of GALA is $0.01677855, down 4.6% in the past 24 hours and 11.2% in the past 7 days. The situation further escalated as daily traders dumped their GALA positions.
It is worth noting that on the 12-hour chart, Distribution of GALA Tokens It has exceeded the accumulation of market participants. This points to growing uncertainty and skepticism surrounding the GALA token amid ongoing legal disputes.
The clash between the Gala Games co-founder and True North United Investments is expected to be a protracted and complex legal battle. As allegations and countersuits continue to unravel, the crypto community remains on edge as it awaits the resolution of a high-stakes confrontation that casts a shadow over the future of the GALA token and the Gala Games itself.
Featured image from the MEXC blog