According to the latest news, the co-founders of blockchain based gaming company Gala Games are involved in a legal battle involving two different cases, one of which accused the other with the theft of $130 million worth GALA.
Lawsuits Filed in Utah District Court on August 31
In particular, Wright Thurston and Eric Schiermeyer, co-founders of Gala, launched lawsuits on each other in a Utah District Court on August 31. Schiermeyer claimed in the individual cases that Thurston bought and sold GALA tokens worth $130 million illegally.
In response, Thurston asserted that Schiermeyer squandered the firm’s resources and engaged in dishonest business practices.
Gala CEO Accuses Fellow Co-founder of Stealing $130M
Schiermeyer, who is also the CEO of Gala, filed the case on the company’s behalf. He claimed that Thurston and his investment company, True North United Investments moved the GALA tokens into 43 different wallets after first moving them to a company-controlled wallet.
On being questioned about all of this, Thurston claimed he had been keeping all of the tokens in protected accounts for the gaming firm.
The lawsuit states: “Last year, Thurston and/or True North began moving the stolen tokens from those wallets and exchanging or selling them in a complex web of obfuscatory transactions.”
Thurston Accuses Schiermeyer of Corporate Waste
Similarly, Thurston’s True North brought a complaint against Schiermeyer in the name of Gala, saying that Schiermeyer had forced the firm to “sell off and waste millions of dollars in company assets” and borrowed millions from Gala for his own use.
According to Thurston’s case, Schiermeyer should lose his position as director due to “corporate waste, conversion, and unjust enrichment.”
President of Blockchain at Gala Confirmed the Lawsuits
Jason Brink, the president of blockchain at Web3 gaming firm, confirmed the cases and voiced that for greater transparency, they will offer their support. However, given this legal dispute, the value of the blockchain gaming project’s native coin has plummeted.
Notably, Gala Games said that “everything is fine” in November of last year after rumors of a billion-dollar rug pull became public.