Gala Games token falls about 25% amid fears of a multi-million-dollar hack

The price of the Gala Games P2E token fell by about 25.6% amid concerns of a hack or fraud. The team said, “Everything is under control.”

The panic, which Gala Games called unwarranted, arose after a single blockchain address minted an anomalous amount of synthetic pGALA tokens. PeckShield researchers flagged this.

Hi @GoGalaGames, you may want to take a look: https://t.co/IfUMdTHz07

— PeckShield Inc. (@peckshield) November 3, 2022

Prices fell from $0.0394 to $0.0293 within roughly two hours (CoinGecko). At the time of writing, the price had recovered to around $0.035. The coin’s market capitalization stands at about $263 million.

По некоторым данным, неизвестные через DEX PancakeSwap выпустили ~55.6 млрд pGALA, стоимостью до $2.2 млрд.

1/ A short thread about $GALA.

An attacker minted 55.6B $GALA ($2.17B) on BSC.#Gala #GALAcoin #GalaGames #pNetwork https://t.co/fcjriIKeRa pic.twitter.com/Rij3mQsSm6

— Lookonchain (@lookonchain) November 4, 2022

Часть эмитированных активов хакеры смогли реализовать на платформе (примерно на ~13 000 BNB), что вызвало обвал курса. Ситуацией воспользовались арбитражеры на Huobi, обрушив цену и там.

#PeckShieldAlert $GALA at 0.0056 $USDT on Huobi vs. $GALA at 0.034 $USD on Binance pic.twitter.com/ubjf3VcPDl

— PeckShieldAlert (@PeckShieldAlert) November 4, 2022

Биржа объявила о временном делистинге токена. Binance, из-за опасений касательно ситуации, приостановила депозиты и вывод средств в GALA. Платформа также прекратила поддержку актива на стандарте BEP-20 (BSC), оставив только ERC-20 (Ethereum).

#Binance suspended deposits and withdrawals for $GALA (BEP-20) on November 3, 19:49pm UTC, due to concerns regarding pNetwork’s pGALA token.

We will also cease support of GALA token on BEP-20 (BSC) network, but continue to support the token on ERC-20 network.

— Binance (@binance) November 4, 2022

«Обновление для всех — вокруг GALA очень много FUD… Множество людей бросается словами вроде “взлом” и “скам”. Ни то, ни другое не соответствует действительности», — написала команда Gala Games.

Президент компании по блокчейну Джейсон Брик заявил, что за обнаруженной неординарной активностью с токенами на PancakeSwap стоят разработчики протокола pNetwork.

Before you panic about $GALA, please read this thread from @pNetworkDeFi.

TLDR: Everything is fine. The activity you have been seeing on @PancakeSwap is pNetwork working to drain the liquidity pool. GALA on ETH is completely unaffected.

Do not buy $pGALA on PancakeSwap for now https://t.co/bAnHxlVcp1

— Jason Brink aka BitBender (@BitBenderBrink) November 3, 2022

The team later said they had found a misconfiguration in the bridge Gala Games uses to interact with BNB Smart Chain. According to developers, solving the issue required reallocating wrapped pGALA tokens and draining the PancakeSwap liquidity pool.

They added that they had taken a snapshot for a future airdrop and urged users not to move assets on the platform to avoid losses.

«All Gala tokens on Ethereum, as well as the bridge collateral, are SAFE»,

5/n All GALA tokens on Ethereum as well as the underlying bridge collateral are SAFE.

— pNetwork 🦜 (@pNetworkDeFi) November 3, 2022

According to the statement, instead of the “compromised pGALA,” new tokens would be created to be distributed via an airdrop “in the coming days.”

pNetwork’s developers also responded to PeckShield:

«Yes, we noticed that pGALA can no longer be considered safe, and we coordinated a white-hat attack to prevent pGALA from being maliciously exploited. Funds are safe, but users should NOT transfer or buy/sell pGALA on PancakeSwap».

Yes, we noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited. Funds are safe but users should NOT transfer or buy/sell pGALA on pancakeswap

— pNetwork 🦜 (@pNetworkDeFi) November 3, 2022

Back in June, the Gala Games team announced the debut of the first NFT game in the Epic Games Store, a battle‑royale titled GRIT inspired by Westerns.

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