The thriving world of Web3 gaming startup Gala Games has taken an unexpected twist as its CEO, Eric Schiermeyer, and co-founder, Wright Thurston, find themselves embroiled in a legal battle. This dramatic turn of events has not only shaken the company but has also had a significant impact on the price of its native token, GALA, which dropped by a staggering 13%.
The Allegations: Theft, Mismanagement, and Self-Dealing
In a lawsuit filed on August 31, Eric Schiermeyer made startling accusations against Wright Thurston. Schiermeyer alleged that Thurston had stolen a jaw-dropping 8.6 billion GALA tokens in early 2021, equivalent to $130 million. This alleged theft occurred when Thurston managed to sell the tokens before the company could intervene, leaving Gala Games in a state of shock.
Schiermeyer's lawsuit didn't stop at accusations of token theft. He also claimed that Thurston had a pattern of founding companies that ended up in litigation, insolvent, or bankrupt. This raised questions about the trustworthiness of Thurston as a business partner.
Counterclaims and Accusations of Mismanagement
Thurston wasn't about to sit idle. On the same day, he filed a counter lawsuit alleging that Schiermeyer had taken control of Gala Games for personal gain. Thurston accused Schiermeyer of using company funds for his personal purchases, including financing a private jet. These allegations painted a picture of mismanagement and self-dealing within the company.
The Gala Games Ecosystem
Gala Games, a Web3 GameFi startup founded by Thurston and Schiermeyer in early 2019, had been making significant strides in the gaming and blockchain industries. The company recently launched Champions Arena, a turn-based RPG game for mobile devices, and ventured into blockchain-based music, film, and digital collectibles. However, the legal battle between its top executives has cast a shadow over its operations.
A History of Deceptive Behavior
Schiermeyer's lawsuit also alleged that Thurston had a history of founding companies that ended up in litigation or financial turmoil. Gala Games was portrayed as the only legitimate venture among Thurston's endeavors.
The Impact on GALA Tokens
The legal feud had an immediate impact on the GALA token's price, which dropped by 13%. Large-scale token movements like these can often trigger fluctuations in token prices, affecting investor sentiment and market dynamics.
Thurston's Legal Troubles Continue
It's worth noting that Thurston had faced allegations of fraud even before this legal battle. The SEC had previously sued him in relation to another company he founded, Green United LLC, for allegedly misleading investors into a fraudulent green crypto enterprise.
Conclusion
The
#GalaGames saga serves as a reminder of the challenges and complexities that can arise within the cryptocurrency and blockchain industry. As the legal battle unfolds, the company's reputation and assets hang in the balance. The crypto community will be closely watching for the resolution of this high-stakes conflict that has sent shockwaves through Gala Games and beyond.
$GALA