Conflict between Gala Video games founders sends GALA token crashing

• The founders of the blockchain gaming platform Gala Video games have locked horns in court docket.
• One founder alleges theft of $130 million value of Gala tokens whereas the opposite alleges company waste.
• The GALA token has dipped greater than 5% over the past 24 hours.

The GALA token is taking a beating after the co-founders biff over the possession and administration of the blockchain gaming firm.

Wright Thurston and Eric Schiermeyer, co-founders of Gala, filed lawsuits towards each other in a Utah District Court docket on August 31. Schiermeyer, who can also be the CEO of Gala Video games, claims that at the start of 2021, Thurston and his funding firm, True North United Investments, stole $130 million GALA tokens.

GALA tokens theft

In keeping with Schiermeyer’s lawsuit, Thurston moved the GALA tokens into 43 completely different wallets after first transferring them to a crypto pockets managed by the True North United Investments Firm. And when questioned in regards to the modifications, Thurston claimed he was holding the tokens in safe wallets for Gala Video games.

Schiermeyer additional claims that in a “advanced internet of obfuscatory transactions” between September 2022 and Could 2023, Thurston allegedly eliminated the tokens from the wallets and swapped or offered them.

The lawsuit alleges that Thurston later denied understanding in regards to the purported token sale though he’s now asserting possession of the offered GALA.

Moreover, Thurston is accused of stealing licenses to function Gala ecosystem nodes, which might generate GALA tokens, promoting the licenses, after which pocketing the cash.

Thurston’s reply

Thurston’s True North, on behalf of Gala, filed a lawsuit suing Schiermeyer for allegedly forcing Gala to “dump and waste tens of millions of {dollars} in firm property” and borrowing tens of millions from Gala for private use.

Thurston’s lawsuit claims that Schiermeyer additionally reportedly established Gala firms in Switzerland and Dubai, the place he appointed himself as the bulk shareholder in an effort to search industrial prospects.

In his lawsuit, Schiermeyer needs Thurston to step down from his place as Gala director and in addition seeks reduction and damages funds, together with the return of the stolen GALA tokens.

Equally, Thurston in his lawsuit has requested that Schiermeyer be faraway from Gala Video games and be compelled to pay not less than $750 million in damages and reduction.

It’s, nevertheless, value noting that in March 2023, the US Securities and Alternate Fee (SEC) sued Thurston and two firms he co-founded (True North and Inexperienced United) for promoting investments in a supposedly faux crypto mining scheme.