Gala Games Founders Engage in $130M Legal Dispute Over Token Theft

• Gala Games founders are embroiled in a $130M token theft dispute.
• CEO Schiermeyer accuses Thurston of misdirecting significant GALA token assets.
• Thurston counters, alleging Schiermeyer’s misuse of company funds for personal gain.

In a recent development that has taken the Web3 gaming sector by storm, the co-founders of Gala Games, Eric Schiermeyer and Wright Thurston, have locked horns in a high-stakes legal confrontation. This rift, centered around allegations of a staggering $130 million token theft, unfolded in a Utah District Court on August 31.

Crypto analysts and educators known on Twitter as CryptoBusy shared a post providing insights on the legal feud between Gala Games co-founders Eric Schiermeyer and Wright Thurston.

Established in early 2019, Gala Games emerged as an innovative player at the crossroads of gaming and finance, often referred to as GameFi. With a foundational partnership, Schiermeyer and Thurston both of them had equal ownership, each possessing a 50% stake in the startup.

The crux of the dispute is an alleged theft of GALA tokens integral to the Gala Games ecosystem. Eric Schiermeyer, serving as the company’s CEO, contends that Thurston, alongside his investment enterprise True North United Investments, illicitly appropriated approximately $130 million worth of these tokens in the early phase of 2021.

Schiermeyer detailed in his legal filings that these GALA tokens were initially transferred to a company-controlled wallet. Subsequently, Thurston allegedly dispersed them across 43 distinct wallets in a move that raised eyebrows. When brought to task about this action, Thurston defended himself, asserting that he intended to safeguard the tokens for GALA.

Thurston has shot back on the other side of this legal chessboard with his own accusations. In his lawsuit, he levies charges against Schiermeyer, alleging that the CEO took undue control of Gala Games, primarily for personal enrichment. Supporting his claim, Thurston pointed out instances where he believes Schiermeyer misallocated company resources for personal indulgences, including acquiring a private jet.

Thurston’s legal documentation further underscores the gravity of the situation, stating, “Of the 8.6 billion tokens deemed stolen, Thurston has already transacted with roughly half, with their value approximated at $130 million during that period”.

However, Schiermeyer’s lawsuit paints a different picture of Thurston. It suggests a pattern of behavior, hinting at Thurston’s entrepreneurial ventures. Many of these endeavors, as per Schiermeyer, culminated in litigations, insolvency, bankruptcy, or even scrutiny from the U.S. Securities and Exchange Commission (SEC).

At the time of writing, the GALA token is at $0.01683, down by 3.81% in the past 24 hours. The bears dominate the market as the coin slips from its all-time high of $0.02165. GALA is currently ranked 79th on CoinMarketCap with a market cap of $393,285,000. However, the trading volume has surged by more than 261% in the past 24 hours at $117,729,193, suggesting investors are still interested in GALA. 

While the legal battle intensifies, stakeholders and followers of Gala Games await the court’s verdict. The outcome would undoubtedly shape the future trajectory of this once-promising Web3 gaming startup. Amidst the legal maelstrom, the hope is that justice prevails and the gaming community remains undeterred in its passion and engagement.