Gala Games Co-founders in High-stakes Legal Battle over Alleged $130M Theft
Detailed Allegations
Schiermeyer, acting on behalf of the company, accused his fellow co-founder, Wright Thurston, of orchestrating the theft of $130 million worth of GALA tokens – a token tied to the Gala Games ecosystem. In his counter lawsuit, Thurston alleged that Schiermeyer had wasted millions of dollars of company assets and utilized company funds for personal purchases.
Schiermeyer’s Lawsuit
The CEO of Gala Games, Schiermeyer, claimed that the missing tokens had been moved to 43 different wallets under Thurston’s control. He further claimed that when confronted about these mysterious movements, Thurston explained that he was holding the tokens in secure wallets for Gala, a claim that Schiermeyer refutes.
The CEO’s lawsuit alleges Thurston exchanged or sold the tokens through complex transactions between September 2022 and May 2023. Additionally, he expressed doubts over Thurston’s claim that the sold GALA tokens belonged to him and accused Thurston of stealing licenses to run Gala ecosystem nodes.
Thurston’s Lawsuit
Meanwhile, Thurston claims that Schiermeyer improperly controlled Gala without appropriate input from him, resulting in wasted company assets and improper use of company funds for personal expenses. Thurston also argues that Schiermeyer established additional Gala entities abroad in Switzerland and Dubai, where he made himself the controlling shareholder.
Both parties are demanding the removal of the other party from Gala, and are seeking considerable damages and relief.
Previous Legal Trouble for Thurston
It is noteworthy that previously in 2023, Thurston was sued by the United States Securities and Exchange Commission over allegations of selling investments in a purportedly fraudulent crypto mining scheme through another company he founded.
Key Points
Who are the main actors in the lawsuit?
The main actors are the co-founders of Gala Games, Wright Thurston and Eric Schiermeyer.
What is the primary accusation in the lawsuits?
Eric Schiermeyer alleges that Wright Thurston stole $130M worth of GALA tokens tied to the Gala Games ecosystem. On the other hand, Thurston accuses Schiermeyer of wasting millions in company assets and using company funds for personal gain.
What are the potential repercussions of the lawsuit?
Both parties are demanding the removal of the other party from Gala, and are seeking substantial damages and relief. Along with financial repercussions, the legal battle may also damage the brand image of the company.
