Gala Games swiftly responded to a significant security incident on May 20, which involved the unauthorized sale of $21 million worth of GALA tokens and the destruction of an additional 4.4 billion tokens.

The breach exposed weaknesses in the project’s internal controls, prompting immediate action from the company.

In a May 21 social media post, Gala Games acknowledged the incident, admitting:

"We failed in our internal controls... This shouldn’t have occurred, and we are implementing measures to prevent its recurrence."

The company assured its community that the breach was quickly identified and contained within 45 minutes, securing the GALA contract and eliminating unauthorized access. Gala Games also reassured that its Ethereum contract for GALA is secure and safeguarded by a multi-signature wallet.

Furthermore, Gala Games stated it has identified the perpetrator of the breach and is collaborating with law enforcement worldwide to apprehend them.

Regarding the impact on their daily distribution process, Gala Games plans to conduct a node vote to determine next steps, allowing the community to decide.

Initial reports indicated that over 5 billion $GALA tokens were minted during the exploit, with Solidity developer 0xquit suggesting that an external hacker or a rogue address holder exploited an admin address for this purpose. The exploited address was promptly blocklisted to prevent further token minting.

The security breach led to a sharp decline in the value of the $GALA token, dropping from $0.048 to $0.038 within two hours, though it later recovered to $0.043. Despite the incident, the GALA token, valued at $1.56 billion, remains among the top 70 cryptocurrencies by market cap.

As Gala Games continues its investigation, the company is committed to bolstering its security measures and maintaining transparency with its community.