Gala Games Co-founders Accuse Each Other Of Stealing $130 Million

On August 31, Gala Games co-founders Eric SCHIERMEYER and Wright THURSTON filed lawsuits against each other in Utah District Court. On behalf of Gala Games, its CEO Schiermeyer accused Thurston and his investment firm True North United Investments of stealing approximately $130 mln worth of GALA tokens associated with the Gala Games ecosystem in early 2021. According to the Schiermeyer lawsuit, GALA tokens were initially transferred to a wallet controlled by Gala Games and then transferred by Thurston to 43 different wallets. Between September 2022 and May 2023, Thurston allegedly engaged in a series of complex transactions using GALA tokens, exchanging or selling them.

The lawsuit alleges that these transactions were intentionally convoluted. Thurston initially denied any knowledge of the token sale, but later claimed that the GALA tokens sold belonged to him, a claim that was refuted by Schiermeyer's lawsuit. Thurston is also believed to have stolen licenses to run nodes on the project's network. True North filed a counterclaim against Schiermeyer, also on behalf of Gala Games. The document states that he caused millions of dollars of company assets to be sold and embezzled and borrowed corporate funds for personal needs.

According to the prosecution, Schiermeyer also set up Gala units in Switzerland and Dubai and became a majority shareholder to seize business opportunities. In addition, he provided Thurston with incomplete or incorrect information and corporate records despite repeated requests. A common requirement in lawsuits is the removal of the defendant from the position of director. Thurston also decided to recover $750 mln from his colleague to pay damages.

Image: Gala Games