Eric Schiermeyer, the CEO of Gala Games sued its co-founder Wright Thurston, alleging that he stole $130 Million worth of GALA tokens and engaged in a pattern of deception. Notably, a lawsuit was filed in the Superior Court of California, County of San Francisco. Amid all these happenings, the price of the GALA token started showing a bearish market trend.
Gala Games is a blockchain games startup that has its core utility token GALA. The lawsuits by Eric Schiermeyer and Wright Thurston were filed on August 31, 2023, in a Utah District Court. While each of them alleges serious misconduct by the other. Allegedly, 8.6 Billion GALA was taken in early 2021 and sold, causing significant harm. “Thousands affected,” Schiermeyer said.
Gala Games Co-Founders Legal Fight
The two co-founders of Gala Games, Eric Schiermeyer and Wright Thurston reached court with dueling lawsuits. Schiermeyer accuses Thurston of stealing millions of GALA tokens while Thurston denies Schiermeyer’s accusation and alleges corporate waste.
On behalf of Gala, Schiermeyer alleged that in early 2021, Thurston and his investment firm, True North United Investments, stole around $130 Million worth of a token tied to the Gala Games ecosystem.
The lawsuit by Schiermeyer also claims the GALA tokens were moved to a wallet under the company’s control but were later moved into 43 other wallets by Thurston.
According to Schiermeyer, Thurston, when confronted about the movements, said he was holding the tokens in secure wallets for Gala. Then, he moved the tokens from the wallets and exchanged or sold them in a “complex web of obfuscatory transactions” between September 2022 and May 2023, as the suit alleged.
The Lawsuit Highlights
The media report further stated that the lawsuit claimed Thurston later feined knowledge of the alleged token sales. However, he now claims the sold GALA belonged to him which Schiermeyer’s lawsuit rejected. Thurston is also “alleged to have stolen licenses to run Gala ecosystem nodes, which can earn GALA tokens — selling the licenses and keeping the proceeds.”
On the same day, Thurston’s True North filed a lawsuit against Schiermeyer — similarly on behalf of Gala — claiming he caused Gala to “sell off and waste millions of dollars in company assets and lent millions of Gala’s funds to himself for personal purchases.”
GALA Token Price Analysis
At press time, the GALA token price is trading at $0.016741 with a 24-hour trading volume of $119.65 Million. GALA is down 8.68% in the last 24 hours, with a current market cap of $391.92 Million.
In the past 24 hours, the token traded in between the price range of $0.01611 to $0.01837. Due to this bearish trend, GALA noted over 11% price decline in the past 7 days which additionally noted more than 20% price drop in the recent 1 month.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/04/gala-games-fight-mode-is-on-amid-its-ceo-and-co-founder/