Blockchain gaming platform Gala Games has emerged from a security breach with a partial victory, recouping $22 million worth of stolen Ether (ETH). However, the company is still grappling with the aftermath and internal conflicts.

Millions Returned, Questions Remain

On May 20th, attackers exploited a vulnerability and minted $200 million worth of GALA tokens. Gala Games responded swiftly, freezing 4.4 billion GALA before significant damage could be done. This decisive action, coupled with the cooperation of law enforcement agencies, likely prompted the hacker to return a portion of the stolen funds.

Despite regaining $22 million, Gala Games hasn't revealed the identity of the attacker or the specifics of the exploit. Community speculation points towards a security contractor who may have inadvertently compromised a wallet.

Burning Tokens and Seeking Community Input

To address the inflated token supply caused by the attack, Gala Games plans to repurchase GALA tokens with the recovered ETH and then burn them. Additionally, a community governance vote will decide the fate of the remaining 4.4 billion frozen tokens.

DWF Labs Steps In to Stabilize the Market

Technology firm DWF Labs played a crucial role in mitigating the fallout. By purchasing 28 million GALA tokens on the open market, they helped stabilize the token's value during a period of uncertainty.

Internal Strife Threatens the Future

Unfortunately, the security breach wasn't the only challenge Gala Games faced. The company's co-founders, Eric Schiermeyer and Wright Thurston, are embroiled in a bitter legal battle.

Schiermeyer accuses Thurston of misappropriating $130 million worth of GALA tokens, while Thurston counters by alleging Schiermeyer's mismanagement of company funds. Both are seeking to oust each other from the company's leadership.

A Shadow Over Recovery

While Gala Games has recovered some stolen funds and taken steps towards resolving the token supply issue, the ongoing legal battle between its co-founders casts a long shadow. The company's future remains uncertain until this internal conflict is resolved.