Gala Games, the blockchain gaming platform co-founded by Eric Schiermeyer and Wright Thurston, has found itself involved deeply in a legal battle that’s making headlines. These two co-founders who were once united in their mission, are now pointing fingers at each other. The drama unfolds with two separate lawsuits, both shedding light on alleged financial misdeeds.
Alleged $130 Million Token Theft Rocks Gala Games
Eric Schiermeyer, who also holds the position of Gala’s CEO has accused Thurston and his investment firm known as “True North United Investments”, of pilfering approximately $130 million worth of Gala tokens in early 2021. According to Schiermeyer’s claims, these GALA tokens were initially moved into a wallet under the company’s control but were later transferred to 43 other wallets by Thurston.
When questioned about these transfers, Thurston asserted that he was safeguarding the tokens for the Gala. However, he eventually moved them from these wallets and engaged in a series of complicated transactions between September 2022 and May 2023, creating a maze of financial complexity, as per Schiermeyer’s lawsuit.
Schiermeyer’s Accusations: Thurston’s Cryptic Token Transactions
Schiermeyer’s lawsuit further contends that Thurston initially denied any knowledge of these token sales but later asserted that the GALA tokens sold belonged to him. This assertion was rejected by Schiermeyer’s legal team.
Not stopping at the alleged token theft, Thurston faces additional accusations of stealing licenses for Gala ecosystem nodes, which have the potential to earn GALA tokens when utilized. Thurston purportedly sold these licenses and pocketed the proceeds.
On the very same day, True North, representing Gala, counterattacked with a lawsuit against Schiermeyer. Their claim revolves around Schiermeyer’s alleged mismanagement of Gala’s assets, causing the company to “sell off and waste millions of dollars in company assets.” The lawsuit also asserts that Schiermeyer borrowed millions of Gala’s funds for personal expenditures.
The Gala Games Jurisdictional Expansion Controversy
To add another layer to this legal tangle, Schiermeyer is accused of establishing Gala entities in Switzerland and Dubai, effectively positioning himself as the controlling shareholder to explore business ventures. True North contends that Schiermeyer operated the Gala without considering Thurston, who serves as a Gala director, and repeatedly provided incomplete or erroneous information and corporate records despite Thurston’s requests for transparency.
Schiermeyer’s lawsuit seeks Thurston’s removal as a Gala director and demands various forms of relief and financial compensation, including the return of the allegedly stolen GALA tokens.
In retaliation, Thurston’s legal action seeks Schiermeyer’s removal from the Gala and demands damages and relief in excess of $750 million.
Prior Troubles: Thurston’s Brush with the SEC
This legal showdown is not the first time Thurston has faced legal scrutiny. In March, the United States Securities and Exchange Commission filed a lawsuit against Thurston, True North, and another company he founded, Green United. The lawsuit alleged their involvement in selling investments related to an alleged fake crypto mining scheme.
Seeking Comments: The Unanswered Questions Surrounding Gala Games
At the time of this report, representatives for Eric Schiermeyer and Wright Thurston have been contacted for comment but have not yet responded. The Gala Games saga unfolds in a courtroom, with these once-aligned co-founders now battling fiercely over allegations of theft, mismanagement, and financial improprieties. The gaming platform’s future hangs in the balance as legal proceedings continue.