Gala Games Co-Founders Clash Over Alleged $130M Crypto Theft
In a recent legal showdown unveiled in the United States District Court for the District of Utah, tensions have erupted within Gala Games, a prominent player in the web3 gaming universe. Co-founders Eric Schiermeyer and Wright Thurston have taken legal action against each other, with court documents surfacing on August 31, 2023.
What's the Dispute About?
The heart of the matter lies in a 76-page Verified Shareholder Derivative Complaint filed by Eric Schiermeyer. He alleges that Wright Thurston, along with his investment vehicle, True North United Investments, LLC, pilfered a staggering 8,645,014,077 GALA tokens from the company. These tokens are the lifeblood of the Gala Games ecosystem.
The Lawsuit's Claims
Schiermeyer's lawsuit contends that Thurston employed a convoluted web of transactions to move, exchange, or sell these tokens, amounting to an approximate value of $130 million. This all happened before Gala Games could intervene.
Interestingly, the lawsuit also reveals that the United States Securities and Exchange Commission (SEC) had previously taken legal action against Thurston and True North. Their alleged involvement in fraudulent activities concerning "Green Boxes," an eco-friendly crypto token venture, had brought them under the SEC's scrutiny.
Gala Games, operating under Wyoming's legal framework, has pioneered a blockchain-based gaming infrastructure where GALA tokens play a central role. These tokens facilitate in-game transactions and act as a means of exchange between players. Gala Nodes, capped at 50,000, offer an opportunity to earn GALA tokens through operation.
Thurston's Checkered Past
Schiermeyer's lawsuit delves into Thurston's history, highlighting his involvement in multiple companies that have faced legal disputes, insolvency, or bankruptcy. It further reveals Thurston's prior entanglements with the SEC and his association with several unsuccessful ventures, including multi-level marketing firms.
Legal and Financial Implications
Schiermeyer's lawsuit seeks remedies such as the return of the misappropriated cryptocurrency, compensation for the damage incurred by Gala Games, and the removal of Thurston from his directorial position. Notably, the lawsuit also mentions Thurston's acquisition of a $40 million residence in Puerto Rico in March 2022.
This legal tussle within Gala Games underscores the importance of transparency and accountability in the crypto industry, reminding all stakeholders of the need for vigilance and integrity. 🕵️♂️💼
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