Gala Games founders biff over $130M theft, corporate waste allegations


The co-founders of blockchain gaming platform Gala Games have locked horns in courtroom over two separate lawsuits, one alleging the theft of $130 million value of Gala (GALA) and the opposite alleging corporate waste.

On Aug. 31, Gala co-founders Wright Thurston and Eric Schiermeyer filed lawsuits towards each other in a Utah District Court.

On behalf of Gala, Schiermeyer — additionally the agency’s CEO — alleged that in early 2021, Thurston and his funding agency, True North United Investments, stole around $130 million value of a token tied to the Gala Games ecosystem.

Schiermeyer’s swimsuit claims the GALA tokens have been moved to a pockets underneath the corporate’s management however have been later moved into 43 different wallets by Thurston, who, when confronted concerning the actions, mentioned he was holding the tokens in safe wallets for Gala.

He later moved the tokens from the wallets and exchanged or bought them in a “complex web of obfuscatory transactions” between September 2022 and May 2023, the swimsuit alleged.

Excerpt from Schiermeyer’s swimsuit towards Thurston concerning the allegedly stolen GALA. Source: PACER

The swimsuit claimed Thurston later feined information of the alleged token gross sales however now claims the bought GALA belonged to him — which Schiermeyer’s swimsuit rejected.

Thurston can be alleged to have stolen licenses to run Gala ecosystem nodes, which may earn GALA tokens — promoting the licenses and protecting the proceeds.

The identical day, Thurston’s True North filed a lawsuit towards Schiermeyer — equally on behalf of Gala — claiming he brought on Gala to “sell off and waste millions of dollars in company assets” and lent hundreds of thousands of Gala’s funds to himself for personal purchases.

Highlighted excerpt from Thurston’s swimsuit towards Schiermeyer claiming the latter used Gala’s property for private acquire. Source: PACER

Schiermeyer additionally allegedly created Gala entities in Switzerland and Dubai and made himself the controlling shareholder to pursue enterprise alternatives, in accordance with the lawsuit.

True North claims Schiermeyer operated Gala with out enter from Thurston — a Gala director — and gave incomplete or incorrect data and corporate information to Thurston “despite repeated requests.”

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Schiermeyer’s swimsuit requested Thurston be eliminated as a Gala director and seeks varied aid and damages funds, together with the return of the allegedly stolen GALA.

Thurston equally requested that Schiermeyer be faraway from Gala and sought no less than $750 million in varied damages and aid.

In March, the United States Securities and Exchange Commission sued Thurston, True North and one other firm he based, referred to as Green United, for selling investments in an allegedly faux crypto mining scheme.

Lawyers for Schiermeyer and Thurston have been contacted for remark however didn’t instantly reply.

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