In a shocking turn of events, the co-founders of the renowned blockchain gaming platform, Gala Games, are embroiled in a bitter legal battle that has the potential to shake the very foundations of the company.
Schiermeyer’s lawsuit accuses Thurston and his investment firm of pilfering a staggering $130 million in GALA tokens, the lifeblood of the Gala Games ecosystem. The tokens, initially moved to a company-controlled wallet, were allegedly shifted into 43 different wallets by Thurston. These tokens were then purportedly sold or exchanged through a “complex web of obfuscatory transactions” spanning from September 2022 to May 2023. Thurston, however, has countered these allegations, claiming that the sold tokens were his own and that he had been securely holding them for Gala.
But the accusations don’t stop there. Thurston is also under fire for allegedly misappropriating licenses to operate nodes in the Gala ecosystem, licenses that can earn GALA tokens. The lawsuit claims that Thurston sold these licenses, pocketing the proceeds.
In a countermove, Thurston’s investment firm, True North, has slapped a lawsuit on Schiermeyer, accusing him of squandering millions in company assets and siphoning off company funds for personal use. The suit paints a picture of Schiermeyer as a rogue CEO, alleging that he established Gala subsidiaries in Switzerland and Dubai, positioning himself as the controlling shareholder to chase business opportunities without Thurston’s knowledge or consent. The lawsuit also claims that Schiermeyer consistently provided incomplete or incorrect corporate records to Thurston, despite repeated requests.
This isn’t the first time the co-founders have locked horns in court. Earlier, Schiermeyer had accused Thurston of a $130 million cryptocurrency theft, to which Thurston retaliated with allegations of Schiermeyer’s breach of fiduciary duties and self-dealing.
Not the first case?
Adding to the company’s woes, the U.S. Securities and Exchange Commission had previously sued Thurston in a separate case related to an alleged fraudulent crypto mining scheme.
Gala Games, once a beacon in the blockchain gaming world, now finds itself in murky waters. The company’s native GALA token has plummeted by 98% since its all-time high in November 2021. As the legal battles rage on, the future of Gala Games hangs in the balance, with many wondering if the gaming giant can weather this storm and emerge unscathed.
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Gala Games on Shaky Ground
The escalating legal feud between Gala Games’ co-founders is casting a dark shadow over the company’s future. With grave allegations of theft and mismanagement, coupled with the sharp decline of the GALA token’s value, investor and user confidence is waning. The added weight of regulatory scrutiny from the U.S. Securities and Exchange Commission further complicates matters. As the internal strife becomes public spectacle, Gala Games faces a pivotal moment: can it rebuild trust and navigate this storm, or will it succumb to the pressures and fade away? Only time will reveal the fate of this once-promising blockchain gaming giant.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.