Gala Games Co founders in Legal Battle Accusations of Token Theft and Misuse of Funds

Gala Games Co-founders in Legal Battle: Accusations of Token Theft and Misuse of Funds

Gala Games co-founders Wright Thurston and Eric Schiermeyer have filed lawsuits against each other in a Utah District Court. Schiermeyer accuses Thurston and his investment firm of stealing $130 million worth of GALA tokens linked to the Gala Games ecosystem, while Thurston alleges that Schiermeyer seized control of Gala Games for personal benefit and misused company funds.

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Gala Games Co-founders Locked in a legal clash

A legal storm is brewing within Gala Games, a startup with a focus on Web3 gaming and finance, popularly known as GameFi. Co-founders Wright Thurston and Eric Schiermeyer, who both held equal ownership stakes of 50% in the company, have filed lawsuits against each other in a Utah District Court. This contentious legal battle, initiated on August 31, has sent shockwaves through the crypto and gaming communities.

Accusations Fly in Both Directions

Eric Schiermeyer, Gala Games’ CEO, has made serious allegations against Wright Thurston and his investment firm, True North United Investments. Schiermeyer claims that Thurston and his firm orchestrated the theft of approximately $130 million worth of GALA tokens linked to the Gala Games ecosystem in early 2021.

Eric Schiermeyer Gala Games CEO
Eric Schiermeyer – Gala Games CEO

According to Schiermeyer’s lawsuit, the GALA tokens were initially placed in a wallet controlled by the company for safekeeping. However, Thurston purportedly moved these tokens to 43 other wallets without proper authorization. When questioned about this move, Thurston asserted that he was safeguarding the tokens for Gala Games.

In a retaliatory move, Thurston filed his own lawsuit on the same day, August 31, alleging that Schiermeyer wrongfully seized control of Gala Games for personal gain. Thurston’s lawsuit further claims that Schiermeyer utilized the company’s funds for personal expenditures, including financing a private jet.

A Valuable Yet Tumultuous Ecosystem

The legal proceedings have taken an alarming turn, with Schiermeyer’s lawsuit asserting that “Thurston has already moved approximately half of the 8.6 billion stolen tokens, valued at approximately $130 million dollars at that time.”

Schiermeyer’s lawsuit paints a challenging picture of Thurston, stating that he “has founded numerous companies, most of which have ended up in litigation, insolvent, bankrupt, and/or sued by the SEC.”

The mention of the SEC raises eyebrows as it comes on the heels of a lawsuit filed by the United States Securities and Exchange Commission against Thurston and True North in March 2023. The SEC alleged that Thurston had defrauded purchasers of “Green Boxes” by making false claims about mining an energy-efficient GREEN crypto token and engaging in other fraudulent activities.

The Future of Gala Games

As Gala Games grapples with this internal turmoil, the outcome of these lawsuits remains uncertain. The clash between the co-founders casts a shadow over the future of this promising startup in the burgeoning GameFi sector, leaving the crypto community and investors anxiously awaiting resolution.