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A tumultuous legal battle is unfolding in GameFi as Gala Games co-founders Wright Thurston and Eric Schiermeyer lock horns over allegations of theft amounting to $130 million in Gala tokens and corporate mismanagement.
In a dramatic turn of events, both co-founders have filed lawsuits against each other in a Utah District Court.
Schiermeyer, who serves as Gala's CEO, claims that Thurston, alongside his investment firm True North United Investments, illicitly acquired approximately $130 million worth of GALA tokens tied to the Gala Games ecosystem.
According to Schiermeyer's suit, these tokens were initially moved to a wallet under the company's control, only to be subsequently transferred into 43 other wallets by Thurston himself.
Thurston argued that he was safeguarding the tokens for Gala's benefit. Yet, later, a convoluted series of transactions involving these tokens took place between September 2022 and May 2023, as alleged by the lawsuit.
On the other hand, Thurston's counterclaim accuses Schiermeyer of mismanaging company assets, leading to millions of dollars being squandered.
Thurston contends that Schiermeyer lent Gala's funds to himself for personal use, and even purportedly created Gala-related entities in Switzerland and Dubai, positioning himself as the controlling shareholder to pursue his own business interests.
As the legal saga unfolds, both co-founders are seeking significant damages and relief, including the removal of the other from their roles within Gala.
The turmoil doesn't stop there, as Thurston is also grappling with a separate lawsuit filed by the United States Securities and Exchange Commission (SEC), which alleges involvement in an alleged fake crypto mining scheme through his company, Green
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