Huobi and Gala Games to Give $50M to Victims of pGala Scheme
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/dcfcc5f4-a693-418d-a529-bb8e772f39d1.png)
Elizabeth Napolitano is a news reporter at CoinDesk.
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Crypto exchange Huobi and Web3 gaming platform Gala Games will distribute up to $50 million worth of cryptocurrencies and software licenses to GALA token holders who lost money in a scheme involving the latter’s utility token last fall, Huobi announced Monday.
Huobi has pledged $25 million worth of cash and user benefits, including 15 million tether (USDT) and $10 million equivalent equity compensation to the plot’s victims. Gala Games will offer its affected users $25 million worth of node licenses. The firms will begin compensating victims within the next week.
The announcement comes five months after a bad actor minted $1 billion worth of pGALA, a wrapped version of GALA that trades on BNB Chain, and offloaded the tokens on decentralized exchanges including PancakeSwap, plunging the price of the GALA 94%. PNetwork, Gala Games’ cross-chain interoperability bridge, said at the time that it coordinated a “white hat attack” on itself to prevent bad actors from absconding with users’ money.
User refunds are just one measure Huobi and Gala Games are taking to address the fallout of the pGALA scheme. In March the gaming network filed a lawsuit seeking $27.7 million in damages and compensation from pNetwork.
Huobi said Monday that it has joined the suit to “recover losses, defend its reputation, and the interests of its users.”
DISCLOSURE
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
Digital Currency Group,
which invests in
cryptocurrencies
and blockchain
startups.
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
stock appreciation rights,
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Elizabeth Napolitano is a news reporter at CoinDesk.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Elizabeth Napolitano is a news reporter at CoinDesk.
