Gala Games Founders Engage in Tense Dispute Over Token Misuse Worth Millions

Gala Games, the innovators behind the mobile RPG Champions Arena and other projects, commenced operations in 2019, marking a steady progression ever since.

Tensions have since escalated between the founding duo, Wright Thurston and Eric Schiermeyer, who both have a 50% stake in the enterprise. The ongoing conflict sees each founder striving to oust the other from the board.

Schiermeyer is pointing fingers at Thurston for purportedly pilfering corporate assets. Conversely, Thurston counters by claiming that Schiermeyer irresponsibly squandered and misused millions, which many interpret as a convoluted form of theft.

Tokens Turned Bullets

Gala Games' lawsuit, led by Schiermeyer, accuses Thurston of channeling around $130 million in GALA tokens from corporate coffers via his investment entity, True North United Investments. Initially, the tokens found their way to an official  wallet, but not long after, were disseminated across 43 different wallets associated with Thurston and his investment venture. Allegations state that these tokens were liquidated between September 2022 and May 2023. Astonishingly, a portion of the sales proceeds were apparently spent on ammunition, while the remainder's whereabouts remain a mystery.

"Thurston initially justified the token sales as ammunition purchases for firearms but soon fell silent," states the lawsuit. It further highlights the gravity of the situation, suggesting that the tokens involved surpassed the total number then available.

Speculation links these developments to the GALA v2 rollout in May 2023, which might have been strategized to nullify the stolen assets' value, although this remains unverified.

Thurston Strikes Back

In retaliation to Schiermeyer's legal action, Thurston lodged his own lawsuit. He alleges that his counterpart's questionable actions have tarnished Gala Games' image and incurred substantial financial losses. Highlighted among Schiermeyer's alleged transgressions is an extravagant payment toward a private aircraft.

"Schiermeyer's dubious conduct and financial indiscretions have inflicted damages amounting to hundreds of millions on Gala Games, sullying its reputation and depleting assets. A noteworthy instance involved BGP making a $5 million down payment for Schiermeyer's personal corporate jet, contradicting the board's prior resolution to offload the jet or its stake," the lawsuit emphasizes.

BGP, representing Blockchain Game Partners, oversees Gala Games.

While Thurston concedes that he occasionally went off the grid for extended periods, he also accuses Schiermeyer of making unilateral decisions detrimental to the company.

Adding to Thurston's woes, he's also ensnared in a separate legal wrangle involving the SEC and another venture, Green United LLC. The contention revolves around its GREEN token, which the SEC speculates might be fictitious. Parties named in the lawsuit include the firm, Thurston, and Kristoffer A. Krohn, a repeat offender in sales malpractices.

The implicated parties have sought a dismissal, asserting the SEC lacks jurisdiction over digital commodities.

This article on the escalating conflict between Gala Games co-founders concerning misallocated tokens worth multi-millions was originally reported by CryptoPotato.