Gala Games Founders Clash in Legal Battle Amidst GALA Token Price Plunge

By Tsunami 09/3/23 8:49 AM

Eric Schiermeyer and Wright Thurston, the two co-founders of Gala Games, have filed lawsuits against each other, intensifying the ongoing conflict within the project.

In the midst of a continuous downward spiral in the price of the GALA token, two of the key figures behind the Gala Games project find themselves on the verge of a courtroom showdown. Gala Games CEO Eric Schiermeyer and co-founder Wright Thurston have each filed lawsuits against the other party, taking the tension within the project to a boiling point.

GALA price 1 year chart | Source: Coingecko

As of the current moment, the GALA token is valued at $0.01759658, reflecting a 5% decrease in the past 24 hours and a substantial 98% decline from its all-time high (ATH) of $0.824837 in November 2021.

The warring factions in this internal struggle are:

Eric Schiermeyer: CEO of Gala Games

Wright Thurston: Gala Games Senior Executive, project co-founder, and owner of investment firm True North, which has been a notable investor in Gala Games.

You can read both of the lawsuits here:
1. Gala Game’s CEO Eric Schiermeyer’s Lawsuit against co-founder: https://t.co/92ywN1fPnY
2. Gala Game’s co-founder Write Thurston lawsuit against Gala’s CEO: https://t.co/xCoFkXRkaG

— Jake Browatzke 🚀 (@jakebrowatzke) September 2, 2023

Lawsuit 1: CEO Accuses Co-Founder of Covert Token Dumping

In his lawsuit, CEO Eric Schiermeyer alleges that Thurston and True North engaged in the surreptitious dumping of billions of GALA tokens, the primary currency within the project. While specific details remain undisclosed, it is speculated that this may have been a significant factor leading to Gala Games’ decision to launch a new token in April 2023 to prevent price erosion due to massive sell-offs. At that time, over 600 million GALA v1 tokens were burned and replaced with the entirely new GALA v2.

According to the lawsuit, Thurston initially claimed that the tokens were “safely held” but later moved and sold them, resulting in a substantial profit of $130 million.

Additionally, Thurston is accused of “stealing” the operational rights of Gala’s blockchain nodes. This copyright is deemed even more critical than tokens since, in a Proof of Stake (PoS) blockchain like Gala, node operators stand to earn more tokens.

Notably, this is not the first time Wright Thurston has faced legal trouble. In March of this year, the SEC filed a lawsuit against Green United, LLC, a company Thurston co-founded, along with Kristoffer Krohn, for allegedly offering tokens deemed as securities. Green United was a cryptocurrency mining company that had offered token mining packages of the GREEN blockchain, which it had created. Thurston, on the other hand, rejected the SEC’s lawsuit, arguing that the agency lacked jurisdiction over the cryptocurrency market.

Lawsuit 2: Co-Founder Sues CEO for Poor Financial Management and Funds Misappropriation

True North, under the control of Wright Thurston, has countersued Eric Schiermeyer, alleging poor financial management and misappropriation of funds that could jeopardize the long-term success of the Gala Games project.

True North accuses the CEO of reckless spending, resulting in a total misallocation of $600 million of project funds. Additionally, they claim that Schiermeyer has been personally benefiting from millions of dollars inappropriately.

The company contends that poor financial management poses a long-term threat to the project’s success, ultimately impacting the interests of shareholders and investors. True North has proposed the removal of Eric Schiermeyer from his positions as CEO and from the leadership board, with a calculation for potential compensation.

The legal battle between the two founders and key figures in the Gala Games project has thrown the future of the gaming platform into uncertainty. As both parties gear up for a legal showdown, the GALA token’s price continues to fluctuate, leaving investors and the crypto community closely watching the outcome of this high-stakes dispute.

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