Gala Games’ co-founders, Eric Schiermeyer and Wright Thurston, have initiated legal actions against each other. On August 31, both executives alleged each other the misappropriation of Gala tokens belonging to the company.
The duo co-founded Gala Games, a startup primarily focused on Web3 gaming and finance (GameFi), in early 2019. They both initially held an equal 50% ownership stake in the company.
These tokens are essential in the Gala Games ecosystem, serving as the primary currency for in-game transactions and player exchanges. The litigation aims to secure the return or compensation for the stolen cryptocurrency.
Additionally, it will redress the harm inflicted upon Gala Games and disqualify Thurston from his role as a director. It also underscores Thurston’s track record of involvement in multiple companies entangled in legal disputes, financial distress, or bankruptcy.
In his lawsuit, Thurston alleges that Schiermeyer wrested control of Gala Games for personal gain. Additionally, Thurston claims that Schiermeyer utilized the company’s funds for personal expenditures, like financing a private jet.
Schiermeyer initiated a Verified Shareholder Derivative Complaint against Thurston and his investment entity, True North United Investments, LLC. According to Schiermeyer’s legal action, the GALA tokens were initially transferred to a wallet controlled by the company. However, Thurston subsequently moved them to 43 other wallets.
He later explained during questioning that he was safeguarding the tokens on behalf of GALA. The lawsuit contends that Thurston had already transferred approximately half of the 8.6 billion stolen tokens. These tokens were valued at around $130 million at that time.
Schiermeyer’s lawsuit accuses the other name of founding numerous companies, many of which have faced litigation, insolvency, bankruptcy, or SEC lawsuits. In March 2023, the United States Securities and Exchange Commission (SEC) initiated legal action against Thurston and True North. The agency alleged that Thurston committed fraud by falsely portraying “Green Boxes” as energy-efficient GREEN crypto token miners. Thurston allegedly made various other deceptive claims to defraud purchasers.
With its CEOs filing lawsuits against each other, Gala Games is in a pickle. However, an administrator on its Discord channel, Benefactor, has shed light on the company’s status. They declared that Gala would proceed with operations as usual.