Reports indicate that an unknown attacker targeted the blockchain gaming project Gala Games on May 20, resulting in losses of approximately $200 million.

According to Solidity developer 0xquit, the attacker created 5 billion GALA tokens using an admin address, suggesting the involvement of an external hacker or a rogue address owner. The attacker could potentially mint an additional 12 billion tokens before reaching a cap. However, the exploited address has been blocklisted, requiring the attacker to gain access to another admin address for further token theft or minting.

The relevant transaction can be verified on Etherscan, although Gala Games has not issued any comments on the incident yet.

Molly White from Web3 Is Going Great noted that the actual value of the attack might be lower, as the attacker managed to swap only $21 million worth of GALA tokens to ETH before the address was frozen. White highlighted that the attacker's inability to sell the tokens without significantly affecting the price is a limiting factor.

The GALA token experienced a sharp decline in price, dropping from $0.048 to $0.038 within two hours, representing a more than 20% decrease. However, the price has partially recovered since, reaching $0.043 as of 12:04 am UTC.

This incident is not the first for Gala Games, as it was previously exploited in a November 2021 incident resulting in a $130 million loss. Subsequently, in 2023, a legal dispute emerged between co-founders Eric Schiermeyer and Wright Thurston, with Schiermeyer alleging theft by Thurston.

Additionally, Gala Games encountered a $1 billion exploit in November 2023, executed by white hat hackers. Although the funds remained secure, the incident raised concerns and impacted GALA prices.

Despite these controversies, the GALA token continues to rank among the 70 largest crypto tokens by market capitalization, with a supply valued at $1.56 billion.