Huobi and Gala Games devise compensation plan for victims of the GALA incident

The Huobi exchange and P2E-project Gala Games will reimburse funds to victims of the incident involving the pGALA synthetic token. This is stated in обращении by the trading platform.

The companies will distribute $50 million in digital assets and software licenses among GALA token holders. The compensation process will begin next week.

Huobi will allocate 15 million USDT and $10 million, while Gala Games will offer node licenses worth $25 million.

On November 3, 2022, unknown released ~55.6 billion synthetic pGALA tokens for up to $2.2 billion on the BNB Chain. Some of the assets were liquidated via DEX PancakeSwap, generating over $4.5 million.

Huobi believes that a further coordinated attack from multiple addresses also yielded the attackers more than $10 million in profits through arbitrage.

Against this backdrop, the native GALA token fell nearly 25% amid concerns of a multi-million-dollar breach. At that time, Huobi accused the DeFi protocol pNetwork’s team of “malicious conduct”.

In addition to the compensation plan, the affected platforms agreed to file a joint lawsuit against pNetwork.

“Huobi and Gala Games have demonstrated responsibility and a commitment to protecting users’ interests by compensating losses related to pGALA. We hope that more exchanges and project teams in the crypto industry will step up to take responsibility and defend users’ interests, and that they will work together to improve the crypto world,” the statement says.

In addition, pGALA will be replaced with a new token, ROCK.

Back in late March 2023, Huobi announced a strategic partnership with Gala Games for joint Web3-initiatives.