Gala Games CEO files lawsuit against co-founder
Gala Games CEO Eric Schiermeyer has filed a lawsuit against co-founder Wright Thurston, accusing him of stealing 8.6 billion GALA tokens worth $130 million. The lawsuit also claims that Thurston has a history of starting companies that eventually end up insolvent or bankrupt. In response, Thurston has filed his own lawsuit, alleging that Schiermeyer took control of Gala Games for personal use, including financing a private jet.
Token theft holds Gala Games hostage
Schiermeyer argues that Thurston’s theft of GALA tokens has essentially held Gala Games hostage, as going public with the theft could cause the collapse of the entire GALA ecosystem. To address the situation, Gala Games issued Gala v2 tokens. However, Schiermeyer claims these tokens were designed to make Thurston’s GALA tokens obsolete while preserving the rest of the ecosystem.
Accusations of mismanagement and self-dealing
Thurston’s lawsuit counters by accusing Schiermeyer of mismanagement and self-dealing, which allegedly damaged Gala Games’ reputation and assets by “hundreds of millions of dollars.” Thurston has previously faced legal issues, including a lawsuit from the US Securities and Exchange Commission related to a fraudulent crypto project.
GALA token price falls amid lawsuits
As a result of the ongoing lawsuits, the price of GALA has dropped by 18% in the past 7 days and 31% in the past 30 days. Some analysts are even speculating whether the GALA price could eventually reach zero. The token currently ranks 85 by market capitalization and is the worst performer among the top 100 tokens by market cap.
Hot Take
The legal battle between Gala Games’ CEO and co-founder has put the future of the GALA token and ecosystem at risk. With accusations of theft and mismanagement, investors and users are left uncertain about the project’s stability. The declining token price reflects the market’s concerns, as GALA faces significant challenges ahead.
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