Gala Games CEO Eric Schiermeyer has launched a legal battle against his co-founder, Wright Thurston, and his investment firm, True North United Investments. Schiermeyer alleges that around $130 million worth of GALA tokens were stolen in early 2021, setting the stage for a contentious legal showdown.
Schiermeyer’s lawsuit claims that GALA tokens were initially moved to a wallet under the company’s control. However, things took a nefarious turn when Thurston allegedly transferred these tokens into 43 different wallets. When questioned about these actions, Thurston purportedly asserted that he was safeguarding the tokens for Gala’s benefit.
However, according to Schiermeyer’s suit, Thurston eventually moved the tokens again, engaging in a series of intricate and convoluted transactions between September 2022 and May 2023.
BREAKING: Gala Games, one of the largest ecosystems in the web3 gaming industry, is facing internal strife as two of its co-founders have filed lawsuits against each other.
— Jake Browatzke (@jakebrowatzke) September 2, 2023
Gala Games Turmoil Over Complex Web Of Transactions
The suit paints a vivid picture of Thurston’s alleged activities, describing them as a “complex web of obfuscatory transactions.” This suggests that Thurston may have intentionally obscured the token movements to elude detection and accountability. Schiermeyer contends that Thurston’s actions were in violation of Gala Games’ interests and the trust placed in him as a co-founder.
In response to the allegations, Thurston has mounted his own legal offensive. True North United Investments filed a lawsuit against Schiermeyer, representing Gala Games, accusing him of causing the company to “sell off and waste millions of dollars in company assets.” The suit further claims that Schiermeyer borrowed millions of Gala’s funds for personal purchases, sparking allegations of financial misconduct.
True North asserts that Schiermeyer operated Gala Games without seeking input from Thurston, who serves as a Gala director. Additionally, Thurston claims that Schiermeyer provided incomplete or erroneous information and corporate records, despite repeated requests for transparency.
Market Reaction And GALA Token’s Decline
As the legal saga unfolds, GALA token holders and the broader crypto community are closely monitoring the developments. CoinGecko reports the current GALA price at $0.01677855, with a 4.6% decline over the past 24 hours and an 11.2% slump in the last seven days. The situation has further escalated, with daily traders offloading their GALA holdings.
Notably, on a 12-hour chart, the distribution of GALA tokens has exceeded accumulation among market participants. This indicates a growing sentiment of uncertainty and skepticism surrounding the GALA token amidst the ongoing legal dispute.
The clash between Gala Games’ co-founders and True North United Investments is expected to be a protracted and complex legal battle. As the allegations and counterclaims continue to unravel, the crypto community remains on edge, awaiting the resolution of this high-stakes confrontation that has cast a shadow over the future of GALA tokens and Gala Games itself.
Featured image from MEXC Blog