Gala Games Co-Founders Embroiled in Lawsuit Accusing Each Other of $130 Million Theft

In a rapidly intensifying internal dispute, the co-founders of Gala Games, a prominent blockchain gaming platform, Eric Schiermeyer and Wright Thurston, have initiated separate legal actions against each other. These lawsuits, both filed on August 31 in a Utah District Court, allege significant misconduct on both sides.

Schiermeyer, who also serves as the CEO of Gala Games, has brought a lawsuit against Thurston and his investment firm, True North United Investments, accusing them of misappropriating approximately $130 million worth of GALA tokens. These tokens are a pivotal component of the Gala Games ecosystem, a major player in the blockchain gaming industry.

According to Schiermeyer’s lawsuit, the GALA tokens were initially transferred to a company-controlled wallet but were subsequently dispersed across 43 other wallets under Thurston’s control. Schiermeyer contends that these tokens were either sold or exchanged through a convoluted series of transactions that occurred between September 2022 and May 2023.

Initially, Thurston asserted that he was securely holding the tokens on behalf of Gala Games, but he later claimed that the tokens he sold were his own. Schiermeyer’s lawsuit strongly disputes this claim. Additionally, Thurston is accused of appropriating licenses to operate nodes within the Gala ecosystem, licenses that have the potential to yield GALA tokens. The lawsuit alleges that Thurston sold these licenses and retained the proceeds.

On the same day, True North, Thurston’s investment firm, filed a lawsuit against Schiermeyer, alleging that he squandered millions of company assets and diverted corporate funds for personal use.

The lawsuit against Schiermeyer contends that he established Gala subsidiaries in Switzerland and Dubai, positioning himself as the controlling shareholder to pursue business opportunities without Thurston’s involvement. Furthermore, it alleges that Schiermeyer furnished incomplete or inaccurate corporate records to Thurston despite numerous requests for transparency.

Both lawsuits are seeking the removal of the other as a Gala director and are pursuing various forms of relief and damages. Schiermeyer’s lawsuit aims to recover the allegedly stolen GALA tokens, while Thurston’s legal action is demanding a minimum of $750 million in damages and relief.

This legal turmoil comes in the wake of a previous lawsuit in March, in which the U.S. Securities and Exchange Commission (SEC) sued Thurston, True North, and another company he founded, Green United. The SEC’s lawsuit accused them of selling investments in a fraudulent cryptocurrency mining scheme. These lawsuits cast a shadow over Gala Games’ governance and financial management, as both co-founders face allegations that, if proven, could have serious repercussions for the company’s future.

Please note that this article is for informational purposes only and should not be considered as legal, tax, investment, financial, or any other form of advice.

Disclaimer: This story is a developing situation, and CryptoGrafos will provide updates as more information becomes available and the situation unfolds.

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