USAEMALL.com – CEO Accuses Co-Founder of $130 Million Theft

Gala Games CEO Eric Schiermeyer has filed a lawsuit towards the corporate’s co-founder, Wright Thurston, alleging the theft of 8.6 billion GALA tokens value $130 million in early 2021.

In addition to alleging theft, the lawsuit claims that Thurston has a historical past of founding firms that find yourself bancrupt, bankrupt, or in litigation.

Schiermeyer’s lawsuit was filed on August 31, and reported on by The Block on Sunday.

In response to Schiermeyer’s submitting, Thurston has filed his personal lawsuit, accusing Schiermeyer of taking management of Gala Games for private use, together with for the financing of a personal jet.

A so-known as GameFi Web3 startup, Gala Games was co-based by Thurston and Schiermeyer in 2019, with every holding a 50% possession stake.

The firm lately launched Champions Arena, a cellular flip-primarily based RPG sport, and likewise operates in blockchain-primarily based music, movie, and digital collectibles.

Token theft held firm hostage

Schiermeyer alleges that Thurston’s theft of GALA tokens in impact held Gala Games hostage, since going public with the theft may doubtlessly result in a collapse of all the GALA ecosystem.

To mitigate the state of affairs, Gala Games issued Gala v2 tokens in May 2023.

However, Schiermeyer claims the tokens had been designed to make Thurston’s GALA tokens out of date whereas preserving the remainder of the ecosystem intact.

Thurston’s lawsuit, in return, accuses Schiermeyer of mismanagement and self-dealing in a method that broken Gala Games’ popularity and property to the tune of “hundreds of millions of dollars.”

Notably, Thurston has confronted authorized points earlier than, together with a lawsuit from the US Securities and Exchange Commission (SEC) associated to Green United LLC, which allegedly misled buyers right into a fraudulent “green” crypto challenge.

Likely consequently of the lawsuits, the worth of GALA has fallen by some 18% previously 7 days days and 31% previously 30 days, and a few analysts are already asking if the GALA value may go to zero.

Ranked 85 by market capitalization, the token is the worst performer among the many prime 100 tokens by market cap on a 7-day foundation, per CoinGecko’s rating.