May 2024 - Gala Games Massive Unauthorized Mint - $21.8m (Global)
"Experiences built around the joy of community and ownership. Together, we are a community-uplifting powerhouse defining new frontiers in Web3 entertainment."
"Giving back power to the players with games they’ll actually want to play." "Setting music free on the blockchain. A decentralized world for music that empowers artists and fans." "Entertainment like never before. Giving film fans and filmmakers a true sense of collaboration in the films they love."
"Possible hacker seized control of an admin address to mint a whopping 5 billion GALA tokens worth $216 million, rapidly offloading 592 million tokens for $21.8 million in ETH before Gala Games could blacklist the rogue address."
"According to the attack breakdown by Hacken, the exploit involved an “Access Control” attack vector, where a malicious actor gained control over a dormant MINTER account on the GALA token contract that had not been used for 180 days."
"The exploiter started exchanging the freshly minted GALA for ETH, executing transactions up to 100 ETH."
"Benefactor from Gala noted that the ETH contract for GALA is secure and under the protection of a multi-sig wallet and was never compromised.
Going on to state “we believe we have identified the culprit and we are currently working with the FBI, DOJ and a network of international authorities.”"
"The security incident involving the $GALA token has been contained and the impacted wallet has been frozen.
This was an isolated incident, the cause of which has been addressed and we are working closely with law enforcement to investigate the individuals behind the breach.
Gala is committed to maintaining the highest standards of security and transparency. We will provide updates as the investigation continues and take all necessary steps to prevent future incidents."
"once authorities are involved I don't believe they can really be called off."
Further Analysis
Gala Games is a blockchain entertainment platform emphasizes community involvement and ownership, promising innovative experiences in Web3 entertainment. They aim to empower players with engaging games, liberate music through blockchain decentralization, and foster collaboration between film enthusiasts and creators. However, they recently faced a security breach where an individual exploited a dormant MINTER account, minting and selling a significant amount of GALA tokens. Gala Games responded by freezing the impacted wallet, affirming the security of their ETH contract, and initiating collaboration with law enforcement agencies for further investigation and prevention of future breaches. They reassure their commitment to security and transparency while promising updates on the investigation progress. The additional minted tokens have now been burned.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
TonUP Smart Contract Configuration Error > > < < Sonne Finance Refund Phishing Attack
Sources/Further Reading
Rekt - Gala Games - Rekt (Dec 31)
@GoGalaGames Twitter (Dec 31)
@TheVultureTrade Twitter (Dec 31)
@jesse_hynes Twitter (Dec 31)
Upcoming $GALA(v2) Contract Upgrade | by Gala Games | Gala Blog (Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
Gala Games Exploiter | Address 0xe2ca471124b124831e231fb835778840ad100f97 | Etherscan
(Dec 31)
Ethereum Transaction Hash (Txhash) Details | Etherscan
(Dec 31)
@Benefactor0101 Twitter (Dec 31)
@GoGalaGames Twitter (Dec 31)
Unauthorized Wallet Locked Down in Record Time & Funds Returned as Security Measures Prove Effective | Gala News (Dec 31)
@GoGalaGames Twitter (Dec 31)
@GoGalaGames Twitter (Dec 31)
Governance Proposal: Temporary $GALA Token Contract Upgrade and Token Burn | Gala News (Dec 31)
@Benefactor0101 Twitter (Dec 31)
@BitBenderBrink Twitter (Dec 31)
@BitBenderBrink Twitter (Dec 31)
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