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