KEY POINTS
Gala Games, a Web3 gaming studio, successfully retrieved the Ether (ETH) it lost in an exploit on Monday, which amounted to $200 million in losses, according to on-chain data.
The exploiter returned approximately 5,913 ETH, valued at around $22 million, to a wallet owned by Gala Games.
Confirmation of Funds Recovery
Gala Games announced the recovery of funds from the recent security breach, with user compensation and refunds already underway. The recovered funds will be converted back to $GALA.
However, it’s worth noting that the total losses reached $200 million after 4.4 billion $GALA tokens were generated and taken on Monday.
Gala CEO Eric Schiermeyer, known as Benefactor on X (formerly Twitter), stated that the studio has identified the attacker and is cooperating with law enforcement in the U.S. and internationally to address the issue.
The security breach was contained within 45 minutes of the unauthorized transaction, and the affected wallet was frozen. Eric Schiermeyer admitted that the Gala team had lapses in internal controls, leading to the security breach, which should have been prevented.
Gala Games’ Commitment to User’s Assets Safety
In a blog post on Tuesday, Gala Games expressed gratitude to its partners for their prompt response and reiterated its commitment to enhancing security measures to prevent future breaches, assuring users of the safety of their GalaChain assets and $GALA Ethereum contract.
“We understand the concern this incident may have caused, but rest assured, our security measures are robust and effective,” the post reads. “We are 100% confident that GalaChain is well equipped to handle any unanticipated challenges that web3 can throw at us.”
Growing Wave of Crypto Breaches and Recoveries
The Gala Games exploit is part of a troubling trend of recent security breaches in the crypto space. Last week, a cyber thief returned $71 million worth of Wrapped Bitcoin (WBTC) after a phishing attack.
In January, CoinsPaid, a crypto payment gateway, faced its second security breach within six months, with unauthorized transactions totaling almost $7.5 million, as reported by Web3 security firm Cyvers.
PeckShield’s 2023 report highlighted losses amounting to $2.61 billion from various hacks and scams, underscoring the growing need for robust security measures in the digital asset industry.
