Gala Games, a leading gaming studio and pioneer in Web3 entertainment, has reportedly filed a lawsuit for $28M against cross-chain bridge provider pNetwork on behalf of pGala victims.
Gala alleges that pNetwork failed to address a misconfiguration in its code, ultimately leading to more than $25M in losses for the Web3 giant. Additionally, Gala claims that pNetwork benefited from this breach.
What did happen?
Everything started when Blockchain security firm PeckShield INc noticed almost 1$ Billion pGALA being minted and alerted Gala Games with pNetwork, a platform that creates Bridges for DeFi and gaming tokens taking responsibility for it afterward.
Back in November 2022, it seemed that pNetwork found an incorrect configuration to the pGALA bridge (BSC GALA — Not affiliated with GALA Developers), which resulted in minting almost 1$ billion gala at once and had to drain the pool on Panckakeswap in order to redeploy pGALA afterward.
Huobi exchange, which supports pGALA saw a large number of tokens exchanged, causing GALA to fall by 90% temporarily in some exchanges, with Huobi delisting pGala shortly after.
GALA on Ethereum and the underlying bridge were not affected.
Gala Files Lawsuit Against pNetwork
More precisely, Gala claims that they got exploited after an unauthorized wallet address minted over $2B in $GALA and dumbed the tokens on PancakeSwap, eventually emptying $4.5M from the liquidity pool, inducing a significant decline in GALA’s token price.
In the lawsuit, Gala states: “The lawsuit states that (i) pNetwork admitted that it mistakenly leaked a governance key when deploying this pGALA bridge, which such key was later used by an attacker to breach the pGALA contract on the BNB chain.”
This is how pNetwork responded to the allegations: “As the pNetwork team, we would like to express our genuine surprise and concern upon hearing the recent announcement by the GALA Games Project to sue pNetwork. We would like to clarify that, three months ago, we had already submitted a comprehensive report to the Swiss authorities detailing the entire incident.”
So what do you think? Are victims going to get their money back by taking pNetwork in court?
What is Gala Games?
Gala Games is a leading blockchain gaming platform known for its triple-A games and nodes for each game which offer passive income in the form of game’s native tokens.
Gala Games is founded by the co-founder of Zynga Games, Eric Schiermeyer, and it’s one the best platforms with quality games. Gala has also created Gala Films and Gala Music with popular artists such as Snoop Dog supporting the ecosystem.