Gala Games Filed a Lawsuit Against pNetwork

Gala Games has filed a lawsuit against pNetwork after an unauthorized address managed to mint more than $2bn worth of GALA tokens.

1/4 We would like to express our genuine surprise & concern upon hearing the recent announcement by GALA Games to sue pNetwork. We would like to clarify that, three months ago, we had already submitted a comprehensive report to the Swiss authorities detailing the entire incident.
— pNetwork 🦜 (@pNetworkDeFi) March 20, 2023

The tokens were dumped on PancakeSwap and thus emptying $4.5 million from GALA’s liquidity pool, causing a significant dip in GALA’s token price.

When this breach happened last year, pNetwork tweeted about it – stating that they were committed to working with Gala and PancakeSwap to restore the pGALA balances.

1/n pGALA on BSC Notice: A misconfiguration of the https://t.co/Tpj4G7IkUe bridge necessitated the redeployment of pGALA. We’re working directly w/the Gala team and w/ exchanges to provide the necessary pGALA balances to restore functionality of pGALA deposits & withdrawals.
— pNetwork 🦜 (@pNetworkDeFi) November 3, 2022

Yet Gala Games sued them for $28M.

In the lawsuit, Gala stated expressly that pNetwork had unwittingly admitted that it had unknowingly leaked a governance key during the pGALA bridge deployment. This was what the attacker(s) used to conduct the breach on pNetwork’s BNB chain.

Gala Games claims the breach resulted in over $25 million loss and is demanding $27.7 million from pNetwork in damages to compensate for the entire debacle. The funds will cover money lost during the breach, and additional compensation for injuries, redress, and other relief.

Responding to the lawsuit, pNetwork expressed shock at Gala’s suit by stating pNetwork team had submitted a comprehensive report to the Swiss Authorities. The team strongly maintains that they have been cooperative with Gala Games and even shared the details of previous conversations – which they alleged Gala Games had now deleted.

2/4 This report included full conversations & relevant documentation, even showcasing evidence of then-deleted messages from the GALA Games team, which demonstrated their role in planning, supporting & communicating the white hat intervention.
— pNetwork 🦜 (@pNetworkDeFi) March 20, 2023

They are determined to keep working with the authorities and believe that the truth will eventually come to light.

About Gala Games

Launched in 2019 by Eric Schiermeyer and Michael McCartney, Gala Games is a blockchain gaming platform. Currently, It has over 1.3 million active monthly subscribers and has sold over 26,000 NFTs.

The company is also looking to expand into and disrupt the film, entertainment, and other industries – like it did the gaming industry.

About pNetwork

pNetwork is a decentralized network that enables crypto-asset switches across blockchains. pNetwork has more than 50 assets among 15 blockchains.

When it was launched in 2019, it was just pTokens. On March 5th, 2020, it evolved into a cross-chain bridging solution when it helped connect Bitcoin and Ethereum. Today, you can bridge several assets on pNetwork.