Gala Games CEO Alleges $130 Million Theft by Co-Founder, Lawsuits Follow


Gala Games CEO Alleges $130 Million Theft by Co-Founder, Lawsuits Follow

In a dramatic turn of events, Gala Games, a prominent Web3 gaming startup, finds itself in turmoil as its CEO, Eric Schiermeyer, has sued co-founder Wright Thurston. The lawsuit alleges that Thurston stole a staggering 8.6 billion GALA tokens in early 2021, which he subsequently sold for $130 million. This legal battle has had significant repercussions, causing a 13% drop in GALA token value.

Key Highlights:

Token Theft Scandal: The lawsuit filed by Gala Games CEO Eric Schiermeyer claims that Thurston's actions effectively held the company hostage, as revealing the token theft would have caused Thurston to liquidate his holdings, severely affecting the GALA ecosystem.

Questionable Business History: Schiermeyer's lawsuit paints Thurston as having a history of founding companies that end up in litigation, bankruptcy, or insolvency. Gala Games appears to be Thurston's sole legitimate enterprise, according to the suit.

Questionable GALA v2 Token Upgrade: Schiermeyer alleges that the company's issuance of Gala v2 tokens in May 2023 had a different purpose than advertised. While presented as an upgrade with improvements, Schiermeyer asserts that the real intention was to render the GALA tokens in Thurston's control obsolete while not affecting the rest of the ecosystem.

Thurston's Responses: When confronted about selling the stolen GALA tokens, Thurston reportedly responded that he was doing so to purchase ammunition for firearms before ceasing communication.

Multi-Level Marketing and Legal Troubles: The lawsuit references several companies allegedly involved in multi-level marketing schemes linked to Thurston. It also includes another lawsuit against Thurston by crypto firm Blox, alleging $200 million in damages for equipment that Thurston promised but never delivered.

Absentee Leadership: Schiermeyer's lawsuit claims Thurston has been largely absent from Gala Games' operations, often being unreachable for extended periods.

Thurston's Countersuit: In response, Thurston filed his lawsuit, acknowledging his lack of involvement in the company but accusing Schiermeyer of operating Gala Games without input from him, causing damage to the company's reputation and assets.

SEC Lawsuit: Thurston faced a lawsuit by the SEC earlier this year related to Green United LLC, a company he founded. The SEC alleged that investors were misled into putting $18 million into a fraudulent green crypto enterprise linked to Thurston.

This legal battle adds to the challenges faced by Gala Games, which recently launched Champions Arena, a mobile turn-based RPG game. The lawsuits, coupled with the drop in GALA token value, cast uncertainty over the company's future endeavors.

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