Co-founders of the blockchain gaming platform Gala Games, Wright Thurston and Eric Schiermeyer, are currently embroiled in a legal battle involving two separate lawsuits. The first lawsuit alleges that $130 million worth of Gala (GALA) tokens were stolen, while the second lawsuit accuses the co-founders of corporate waste.
The lawsuits were filed on August 31 in a Utah District Court. Schiermeyer, on behalf of Gala, claims that Thurston and his investment firm True North United Investments stole approximately $130 million worth of GALA tokens in early 2021. According to Schiermeyer’s suit, the GALA tokens were initially moved to a wallet under the company’s control but were later transferred to 43 other wallets by Thurston. When confronted about these movements, Thurston stated that he was holding the tokens in secure wallets for Gala. However, he allegedly proceeded to exchange or sell the tokens in a series of complex transactions between September 2022 and May 2023, as alleged in the lawsuit.
Furthermore, Thurston is accused of stealing licenses to operate Gala ecosystem nodes, which can earn GALA tokens. He allegedly sold these licenses and kept the proceeds for himself. Schiermeyer’s lawsuit rejects Thurston’s claim that the sold GALA tokens belonged to him.
In response, Thurston’s True North filed a lawsuit against Schiermeyer, also on behalf of Gala, on the same day. The lawsuit accuses Schiermeyer of causing Gala to sell off and waste millions of dollars in company assets. It also alleges that he lent millions of Gala’s funds to himself for personal purchases. According to the lawsuit, Schiermeyer created Gala entities in Switzerland and Dubai, making himself the controlling shareholder, without input from Thurston, who is a Gala director. Additionally, True North claims that Schiermeyer provided incomplete or incorrect information and corporate records to Thurston despite repeated requests.
Schiermeyer’s lawsuit seeks to have Thurston removed as a Gala director and requests relief and damages payments, including the return of the allegedly stolen GALA tokens. On the other hand, Thurston’s lawsuit also aims to remove Schiermeyer from Gala and is seeking at least $750 million in various damages and relief.
This legal battle comes after the United States Securities and Exchange Commission (SEC) filed a separate lawsuit against Thurston, True North, and another company called Green United. The SEC accused them of selling investments in an allegedly fraudulent crypto mining scheme.
The outcome of these lawsuits will determine the fate of Gala Games and its co-founders. It remains to be seen how the court will rule on the alleged theft of GALA tokens and the claims of corporate waste. Gala Games is a prominent blockchain gaming platform, and this legal dispute could have significant consequences for the company’s future.
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