South Korean cryptocurrency exchange Bithumb has announced that the token GALA, issued by blockchain gaming platform Gala Games, has been listed as a designated warning item by the Digital Asset Exchange Association (DAXA) of South Korea. As a result, Bithumb has temporarily suspended deposits and withdrawals of GALA. The resumption of withdrawal services will be notified separately.
Earlier today, Gala Games experienced a hacker attack, resulting in an additional issuance of 5 billion GALA tokens (approximately 210 million USD). Although Gala Games has stated that they have frozen the attacker’s wallet address, DAXA has still decided to list GALA as a designated warning item.
What is DAXA? In 2022, the collapse of Terraform Labs’ Luna and UST, products of a well-known South Korean blockchain team, caused many South Korean investors to suffer losses. In response to this, the top five South Korean exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, voluntarily formed the Digital Asset Exchange Association (DAXA) to help investors guard against token volatility and fraud threats. Additionally, to protect investors, DAXA member companies can take measures such as urging cautious investment, designating warning items, and terminating trading support for tokens.
Hacker Issuance of 5 Billion GALA Tokens
On the other hand, Gala Games was subjected to a hacker attack this morning. According to on-chain data, the hacker minted 5 billion GALA tokens and sold 600 million GALA tokens (approximately 25.36 million USD) in the market, with the remaining 4.4 billion GALA tokens still held in the hacker’s address.
Following the incident, Gala Games co-founder Eric Schermeyer urgently posted a statement, stating that the attack vulnerability has been fixed, and the GALA ETH contract is protected by a multi-signature wallet. He also mentioned that the team has identified the attacker and is currently cooperating with US authorities. Additionally, Gala Games’ official statement assured that the hacker’s address has been frozen, alleviating concerns about a large amount of tokens being sold from the address.
Related Reports:
US Court Approves Seizure of 279 Cryptocurrency Accounts, Including North Korean Hacker Proceeds and Chinese Money Laundering Coins
DeFi Protocol Hedgey Finance Suffers Hacker Attack, Losing $44.7 Million
Preventing Hacker Phishing Attacks: Three Signature Authorization Principles You Must Understand.