Gala Games Files Lawsuit Against pNetwork Over Security Breach

Gala Games Takes Legal Action

Gala Games has initiated a lawsuit against pNetwork, the cross-chain interoperability bridge utilized on the BNB Smart Chain. This legal move stems from an incident in November where Gala Games experienced a significant security breach. An unauthorized wallet address was able to mint over $2 billion in GALA tokens, which were subsequently dumped on PancakeSwap. This exploit drained $4.5 million from the liquidity pool and led to a dramatic decline in the token's market value.

Allegations of Negligence

The lawsuit claims that the breach was due to "negligence and tortious interference" on the part of pNetwork. The assertion is that a plain text private key leak was a critical factor. This private key from a pNetwork affiliated smart contract was allegedly exposed on GitHub, making it accessible to unauthorized parties.

Impact on GALA Token

The aftermath of this exploit was severe for the GALA token. The unauthorized minting and subsequent dumping of tokens caused a significant drop in the token's price. This incident not only affected the liquidity pool but also shook investor confidence in the security measures of the blockchain-based platform.

Highlighting Security Vulnerabilities

This lawsuit underscores the importance of robust security protocols in blockchain technology, especially for platforms dealing with substantial financial transactions. The incident serves as a reminder for all blockchain stakeholders to ensure their systems are impervious to such vulnerabilities, reinforcing trust and stability in the digital asset ecosystem.