GALA Falls 8% as Leadership Team Faces $130 Million Token Theft Dispute

Gala Games’ leadership, including CEO Eric Schiermeyer and co-founder Wright Thurston, are embroiled in a dispute. This legal clash has caused the value of the native token of the blockchain gaming project to nosedive.

In the separate lawsuits, Schiermeyer alleged that Thurston unlawfully acquired and traded $130 million GALA tokens. Simultaneously, Thurston counterclaimed that Schiermeyer mismanaged the firm’s assets and participated in deceptive practices.

Schiermeyer Lawsuit

Gala Games CEO Schiermeyer’s lawsuit was filed on behalf of the shareholders of Blockchain Game Partners, the company behind Gala Games.

The suit also includes Thurston’s company, True North United Investments, as a defendant. It alleged that Thurston stole 8.645 billion GALA tokens worth $130 million from the company in 2021 and, when confronted about it, said he was only holding it in secure wallets for Gala Games. The lawsuit claims:

“Last year, Thurston and/or True North began moving the stolen tokens from those wallets and exchanging or selling them in a complex web of obfuscatory transactions. He was able to exchange, hide or sell approximately $130,000,000 worth of the stolen GALA before Gala Games could stop him.”

Additionally, Thurston allegedly stole licenses for Gala game node operations and sold them for his benefit. It claimed that Thurston is an absentee director, unlike the CEO. But he has paid himself more than ten times Schiermeyer’s compensation.

Schiermeyer wants disgorgement or restitution of the assets stolen, compensation for damages, and Thurston’s removal as director of Gala Games.

Thurston’s Response

On the other hand, Thurston’s lawsuit wants Schiermeyer to be removed as director for “corporate waste, conversion, unjust enrichment.”

Thurston also claimed his action was filed on the Gala Games’ parent company’s behalf. Allegations against Schiermeyer include burning off about $600 million in Gala and shareholders assets, causing the company to lend money to himself, and forming offshore entities to take advantage of business opportunities meant for Gala games.

Gala Price Drops Amid Internal Drama

With both stakeholders suing themselves and claiming it is in the best interest of Gala Games, other executives in the company are choosing to stay neutral. President of blockchain at Gala Games, Jason Brink, confirmed the lawsuits, saying he welcomes the transparency they will bring.

However, GALA holders might not be so happy about it, given the nearly 8% decline in the token value in the last 24 hours. The token has struggled for over a year and is now down 97.9% from its peak of $0.83.