Blockchain-based gaming platform Gala Games debunks the claims that the platform is hacked or exploited, but the misconfiguration of the pNetwork bridge did cause the plunging of the GALA token.
According to sources, an attacker minted GALA tokens worth $2.17 billion on BSC. Then, 10.72 billion of the newly created tokens were dumped on PancakeSwap, causing the pool to be depleted entirely.
Trading parties took advantage of the circumstance and bought GALA from PancakeSwap to sell it on Huobi Global. The price of the token drastically dropped by 25% as a result.
Binance has been recognized as the exchange utilized by the suspected attacker by on-chain detectives.
Jason Brink, the president of the blockchain firm, revealed that pNetwork was behind the “unusual activity” detected on PancakeSwap that was working to drain the liquidity pool in a bid to protect it from being maliciously exploited.
GALA tokens on Ethereum, and GALA-related assets on the GALA bridge, are currently safe, and the team joined forces with the pNetwork to temporarily halt transaction activity on the bridge.
Brink urged users not to purchase pGALA on PancakeSwap for the time being. The existing PancakeSwap pool remains invalid, and the bridge is temporarily suspended.
According to the company, a new pGALA token will be generated and airdropped to all previous holders after the pool has been completely depleted.
pNetwork tweeted, “Yes, we noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited. Funds are safe but users should NOT transfer or buy/sell pGALA on pancakeswap.”
Due to concerns, Binance has halted deposits and withdrawals for BEP-20 GALA tokens. Additionally, Binance and the pNetwork team are now going through a recovery strategy for the affected users.
At the time of writing, the GALA token is trading at $0.035.
Compiled by Coinbold