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The as yet unidentified attacker behind The symbolic feat of Monday’s $240 million Gala Games returned the Ethereum (ETH) gained by selling some tokens, as Gala assesses the fallout from the attack and how to answer lingering questions.
Around 5,913 ETH, or around $22 million, were removed from attacker’s wallet to a Gala wallet on Tuesday morning, representing funds earned from the sale of 600 million GALA tokens on a decentralized exchange Uniswap shortly after Monday’s feat.
On Gala’s Discord server on Tuesday, CEO Eric “Benefactor” Schiermeyer said the company would “probably buy and burn” GALA tokens using the recovered ETH, a move that could potentially drive up the token’s price after the decline on Monday.
On Monday, Schiermeyer wrote in a Discord announcement that the crypto gaming startup believed it knew who was behind the attack and said it was working with authorities to bring the attacker to justice. The person in question has not yet been publicly identified and Gala Games declined to comment further beyond the published statements.
Gala published a blog post recounting the attack and the countermeasures taken by the company on Tuesday. A wallet with administrative access to the GALA token minting contract minted 5 billion GALA tokens on Monday, worth approximately $240 million at the time of the exploit, and then began selling them on the open market.
After about 45 minutes, Gala was able to prevent the wallet from making any further sales thanks to a feature built into its v2 contract upgrade from last fall. The attacker managed to sell 600 million GALA tokens before this happened, and the price of GALA plunged 20% during this period as the market dealt with the flood of tokens.
“We want to assure our community that $GALA’s minting capabilities on GalaChain remain secure and uncompromised,” the post read. “Our internal controls and multisig security protocols are designed to protect against such incidents, and we are continually improving them to stay ahead of potential threats. »
However, while the company claimed the contract was secure, Schiermeyer wrote on Monday that Gala had “missed out” when it came to access to such roles.
“We messed up our internal controls…this should not have happened and we are taking steps to ensure it doesn’t happen again,” he wrote Monday.
What about the remaining 4.4 billion GALA tokens? This represents almost 9% of the total supply of 50 billion GALA tokens, and they are currently frozen in the attacker’s wallet. On Monday, Schiermeyer wrote that they would be considered “effectively burned” because they are inaccessible and cannot be spent.
In other words, the Gala ecosystem would consider them withdrawn from circulation. But it now appears that Schiermeyer’s classification was premature, and the Gala network node operator community will have the opportunity to vote on the matter.
“A new vote on Founder’s Node ecosystem governance will soon decide whether blocklisted GALA will be considered burned with respect to GALA’s dynamic supply distribution model as outlined in the Gala ecosystem plan“, we read in the message.
Edited by Ryan Ozawa.
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