In blockchain gaming, few stories have been as riveting as the ongoing legal battle between Gala Games’ co-founders. This intricate tale of alleged financial wrongdoings and corporate mismanagement has taken many twists and turns. Here’s the comprehensive lowdown.
The Initial Spark: Dueling Gala Games LawsuitsÂ
As of August 31, co-founders Wright Thurston and Eric Schiermeyer have engaged in a legal dispute. They initiated separate lawsuits in Utah’s District Court. Their disagreements stem from alleged financial misdeeds related to the Gala Games platform.
Schiermeyer, wearing his CEO hat, asserts that in early 2021, Thurston siphoned off roughly $130 million of GALA tokens, intrinsic to Gala Games. Instead of being safeguarded under the company’s oversight, these tokens allegedly migrated to 43 distinct wallets, courtesy of Thurston. Thurston defended his actions when probed, claiming he was merely securing them for Gala’s benefit.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! However, Schiermeyer’s lawsuit paints a different picture. Between September 2022 and May 2023, it alleges that Thurston engaged in deceptive transactions, ultimately selling or trading the tokens. While initially appearing oblivious to these sales, Thurston later claimed ownership of the sold tokens—a claim Schiermeyer firmly rebuffs.
The plot thickens with accusations that Thurston appropriated licenses crucial for running Gala’s ecosystem nodes. Thurston allegedly sold off these licenses, which can generate GALA tokens, for personal gain.
Turnabout is Fair Play: Schiermeyer’s Actions
In a concurrent lawsuit, Thurston’s firm, True North, levels accusations against Schiermeyer. The claim suggests Schiermeyer’s mismanagement caused the company substantial financial losses. Moreover, it’s alleged that he borrowed substantial sums for personal endeavors and strategically positioned himself as the controlling shareholder in new Gala establishments in Switzerland and Dubai.
True North’s grievances don’t end there. The firm contends that Schiermeyer managed Gala without considering Thurston’s input as a director. Moreover, Schiermeyer is accused of providing Thurston with partial or inaccurate company records, even after multiple requests.
Both parties seem to agree that the other should be ousted. Schiermeyer’s suit calls for Thurston’s removal as a Gala Games director, accompanied by compensatory measures, especially the return of the controversial GALA tokens. Thurston echoes this sentiment, demanding Schiermeyer’s removal and a staggering $750 million in damages.
A Tarnished Legacy?
To further complicate matters, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Thurston and his other ventures in March. The SEC alleges dubious practices, accusing him of peddling investments in a non-existent crypto mining operation.
The legal standoff between the co-founders of Gala Games underscores the volatile nature of the blockchain industry. As the world watches, the outcome of these lawsuits will undoubtedly shape the future trajectory of Gala Games and potentially set precedents for similar disputes in the rapidly evolving crypto realm.
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