MAY 21 UPDATE – Stolen Funds Returned
Following our security team’s swift, effective response and the involvement of Federal law enforcement agencies, the >$20M (in ETH) has been returned to the Gala ecosystem.
We want to inform the Gala community about a recent security incident involving $GALA on the Ethereum network. Yesterday afternoon we detected a suspicious transfer of $200 million in $GALA tokens. Within 45 minutes, all tokens in the unauthorized wallet were frozen. Our prompt response and the robust security measures in place ensured that the impact was minimized, and we want to reassure our community that assets remain secure.
Incident Overview
On the afternoon of Monday, May 20th, our monitoring systems flagged an unusual transfer of $200 million worth of $GALA tokens. This was an isolated incident on the Ethereum network, and our immediate response was to activate GalaChain’s blocklist protocol, swiftly halting any further unauthorized minting and movement of $GALA and effectively mitigating the incident.
Within 45 minutes of the unauthorized mint, approximately 90% of the minted $GALA was locked. A new Founder’s Node ecosystem governance vote will soon decide if the blocklisted $GALA will be considered burned as it relates to $GALA’s dynamic supply distribution model as described in the Gala Ecosystem Blueprint.
Swift Mitigation Measures
Using a new feature that was implemented with the $GALA v2 contract upgrade, our security team quickly blocklisted the wallet and froze the unauthorized tokens. This measure stopped any potential misuse and prevented the incident from escalating.
We immediately contacted US Federal law enforcement agencies to handle the breach. Our ongoing cooperation with authorities ensures a thorough investigation and appropriate legal action against the culprits.
We want to assure our community that the minting capabilities of $GALA on GalaChain remain secure and uncompromised. Our internal controls and multisig security protocols are designed to protect against such incidents, and we are continuously enhancing them to stay ahead of potential threats.
Plans are already in place to make reimbursements to anyone who has been subjected to unreasonably high transactional fees associated with this incident.
Commitment to Security and Transparency
We are deeply grateful to our partners for their quick response and invaluable assistance during this incident. Your support has been crucial in minimizing potential damage and ensuring our platform’s security.
Gala is committed to maintaining the highest standards of security and transparency. We will continue to provide updates as the investigation progresses and take all necessary steps to prevent future incidents.
We understand the concern this incident may have caused, but rest assured, our security measures are robust and effective.
Pioneering in unknown territory can sometimes be a dangerous activity, but we are 100% confident that GalaChain is well equipped to handle any unanticipated challenges that web3 can throw at us. GalaChain remains a secure and reliable blockchain for all users. Thank you for your understanding and continued support as we navigate this challenge together.
