Gala Games Co-founders Engage in Legal Battle over $130M Theft Issue

Gala Games Co-founders Engage in Legal Battle over $130M Theft Issue

Co-founders of blockchain gaming platform Gala Games have engaged in a legal battle over two separate lawsuits filed in the court. One of the co-founders alleged the theft of $130 million worth of Gala tokens, while the other alleged corporate waste.

Last Thursday, August 31, Gala Games co-founders Eric Schiermeyer and Wright Thurston filed lawsuits against each other in the Utah District Court. On behalf of Gala Games, its CEO Schiermeyer has accused Thurston and his investment firm, True North United Investments, of embezzling approximately $130 million worth of GALA tokens linked to the Gala Games ecosystem in early 2021.

According to Schiermeyer’s lawsuit, the GALA tokens initially moved to a wallet under Gala Games’ control were subsequently transferred to 43 different wallets by Thurston. When questioned about these transfers, Thurston claimed he was safeguarding the tokens for Gala.

However, between September 2022 and May 2023, Thurston allegedly engaged in a series of intricate transactions involving the GALA tokens, eventually exchanging or selling them. The lawsuit alleges these transactions were intentionally convoluted.

Thurston initially denied any knowledge of the token sales but later asserted that the sold GALA tokens were his, a claim refuted by Schiermeyer’s lawsuit. Allegedly, Thurston also sold licenses to run Gala ecosystem nodes, which can earn GALA tokens. He later sold these licenses and kept the proceeds.

Using GALA Tokens for Personal Purchases

True North, under Thurston’s leadership, filed a lawsuit against Schiermeyer, representing Gala Games. The lawsuit accuses him of causing Gala to squander millions of dollars in company assets and borrowing millions of Gala’s funds for personal expenses.

According to the lawsuit, Schiermeyer allegedly established Gala entities in Switzerland and Dubai, positioning himself as the dominant shareholder to pursue business opportunities, all without Thurston’s input, who is a director at Gala. Furthermore, True North asserts that Schiermeyer repeatedly provided incomplete or inaccurate information and corporate records to Thurston despite numerous requests for transparency.

Schiermeyer’s lawsuit seeks Thurston’s removal as a Gala director and demands various forms of relief and damages, including the return of the allegedly misappropriated GALA tokens.

In a parallel legal action, Thurston called for Schiermeyer’s removal from Gala and requested over $750 million in damages and relief.

It’s worth noting that in March, the United States Securities and Exchange Commission (SEC) sued Thurston, True North, and another firm he founded, Green United, for their involvement in an allegedly fraudulent cryptocurrency mining scheme.

Efforts to obtain comments from lawyers representing Schiermeyer and Thurston have thus far been unsuccessful.


Gala Games Co-founders Engage in Legal Battle over $130M Theft Issue

Source link