Gala Games Co-Founders Sue Each Other Over $130M Crypto Theft
Jessie A Ellis Sep 03, 2023 09:50
Gala Games co-founders Eric Schiermeyer and Wright Thurston are suing each other, alleging Thurston stole $130 million in GALA tokens. Thurston has been sued by the SEC for fraudulent activities.
A recent lawsuit filed in the United States District Court for the District of Utah has revealed internal strife at Gala Games, a leading company in the web3 gaming industry. Co-founders Eric Schiermeyer and Wright Thurston have filed lawsuits against each other, with the documents becoming public on August 31, 2023.
Detailed Allegations from the Lawsuit
According to the 76-page Verified Shareholder Derivative Complaint filed by Eric Schiermeyer, Wright Thurston and his investment vehicle, True North United Investments, LLC, are accused of stealing 8,645,014,077 GALA tokens from the company.
These tokens are integral to the Gala Games ecosystem. The lawsuit alleges that Thurston initiated a "complex web of obfuscatory transactions" to move, exchange, or sell the stolen tokens, amounting to approximately $130 million, before the company could take action.
Founder and Chief Book Wizard at MagicBookAI state,
BREAKING: Gala Games, one of the largest ecosystems in the web3 gaming industry, is facing internal strife as two of its co-founders have filed lawsuits against each other.
SEC's Previous Involvement
The lawsuit also brings to light that the United States Securities and Exchange Commission (SEC) had previously sued Thurston and True North for alleged fraudulent activities related to "Green Boxes," an energy-efficient crypto token venture.
Company and Tokenomics
Gala Games, incorporated under the laws of Wyoming, has developed a blockchain-based gaming infrastructure where GALA tokens serve as the core utility token. The tokens are used for in-game purchases and as a medium of exchange between players. The company also offers Gala Nodes, which are capped at 50,000 and can be operated to earn GALA tokens.
Thurston's Checkered Past
The lawsuit delves into Thurston's history, highlighting his involvement in multiple companies that have faced litigation, insolvency, or bankruptcy. It states that Thurston has been sued by the SEC in the past and has been involved in numerous failed ventures, including multi-level marketing companies.
Legal and Financial Repercussions
Schiermeyer's lawsuit seeks disgorgement or restitution for the stolen cryptocurrency, compensation for the damage caused to Gala Games, and the removal of Thurston as a director. The lawsuit also mentions that Thurston purchased a $40 million house in Puerto Rico in March 2022.
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