GALA Announces Lawsuit Against pNetwork
Gala holds pNetwork responsible for the loss of millions of dollars in damages, and a chunk of its reputation.
GALA is taking on pNetwork in court. The case will determine who is responsible for a multi-million dollar breach back in November 2021. In essence, pNetwork is a cross-chain bridge provider. In this particular case, pNetwork “constructed and maintained” a bridge between $GALA and BNB Smart Chain (BSC).
During the breach, an unauthorized wallet address minted over $2 billion in GALA. Consequently, the perpetrator dumped the tokens on PancakeSwap – a decentralized exchange on the BNB Chain. Furthermore, this token dump drained $4.5 million from the liquidity pool, which caused GALA’s token price to plummet.
Thus, GALA is claiming $27.7 million in damages against pNetwork. Moreover, the lawsuit is demanding the money for “out-of-pocket costs due to the breach, additional compensation for injuries, punitive damages and other relief the court would deem just and equitable.”
A breach too far
GALA is making serious allegations against pNetwork. Firstly, Gala claims that pNetwork “negligently and recklessly caused a security breach”. In addition, the lawsuit states that pNetwork “intentionally carried out a failed recovery plan that caused further harm.”
In response, pNetwork is defiant in its innocence. The company said in a statement to Cointelegraph: “As the pNetwork team, we would like to express our genuine surprise and concern upon hearing the recent announcement by the GALA Games Project to sue pNetwork. We would like to clarify that, three months ago, we had already submitted a comprehensive report to the Swiss authorities detailing the entire incident.”
They added: “We have been fully transparent and cooperative with the authorities in this matter, and we firmly believe that the truth will come to light.”
The incident in question
The incident dates back to November 3rd 2021. In summary, GALA was informed about a breach on the BNB Chain, which allegedly was a result of pNetwork engineers leaving a key in the GitHub repository. Apparently, pNetwork promised, but failed to deliver, a recovery plan which would have returned the BNB assets in full to the liquidity pool.
According to GALA, the lawsuit is being made on behalf of the “victims” who lost out in the breach. Additionally, GALA claims that any damages, less legal fees, will be converted to $GALA and burned. What is more, GALA claims its reputation has been damaged by the incident.
The Web3 games company is inviting any third-parties affected by the incident to come forward and join the suit against p Network.
The case continues. We will keep you in the know as it all unfolds.
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