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Tensions have escalated between the co-founders of blockchain gaming platform Gala Games, impacting the value of the company’s native GALA token, which has plummeted by over 5% in the past 24 hours.
Wright Thurston and Eric Schiermeyer, the key figures behind Gala Games, have filed lawsuits against each other in a Utah District Court as of August 31. Schiermeyer, who also serves as the CEO of the company, accuses Thurston and his investment firm, True North United Investments, of misappropriating $130 million in GALA tokens.
Accusations of GALA Token Misuse
Schiermeyer’s legal filing alleges that Thurston transferred the disputed GALA tokens to 43 separate wallets after initially moving them to a wallet under the control of True North United Investments. Thurston later asserted that the tokens were being securely held for the benefit of Gala Games.
Schiermeyer further contends that between September 2022 and May 2023, Thurston clandestinely liquidated or traded the tokens through a series of complex transactions. The lawsuit also accuses Thurston of illicitly acquiring licenses for Gala ecosystem nodes, reselling those licenses, and retaining the proceeds.
Counterclaims by Thurston
In response, Thurston’s True North has lodged a lawsuit against Schiermeyer, accusing him of squandering millions of dollars of company assets and leveraging Gala’s finances for personal expenditures.
The counter-suit also claims that Schiermeyer unilaterally established Gala subsidiaries in Switzerland and Dubai, positioning himself as the majority stakeholder for personal business ventures.
Schiermeyer’s legal action seeks the removal of Thurston from his directorial role at Gala and restitution, including the recovery of the allegedly stolen GALA tokens. Thurston’s suit, on the other hand, demands Schiermeyer’s ouster from Gala Games and seeks a minimum of $750 million in damages and relief.
Regulatory Scrutiny
It’s worth noting that in March 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Thurston and two of his co-founded companies, True North and Green United, alleging fraudulent activities related to a purported crypto mining scheme.
Sentiment: Neutral
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