The co-founders of blockchain gaming platform Gala Video games have locked horns in courtroom over two separate lawsuits, one alleging the theft of $130 million value of Gala (GALA) and the opposite, alleging company waste.
On Aug. 31 Gala co-founders Wright Thurston and Eric Schiermeyer, additionally the agency’s CEO, filed lawsuits in opposition to each other in a Utah District Courtroom.
On behalf of Gala, Schiermeyer alleged that in early 2021 Thurston and his funding agency True North United Investments stole round $130 million value of GALA — a token tied to the Gala Video games ecosystem.
Schiermeyer’s go well with claims GALA tokens had been moved to a pockets beneath the corporate’s management however had been later moved into 43 different wallets by Thurston who, when confronted concerning the actions, mentioned he was holding the tokens in safe wallets for Gala.
He later moved the tokens from the wallets and exchanged or bought them in a “complicated internet of obfuscatory transactions” between September 2022 and Might 2023, the go well with alleged.
The go well with claimed Thurston later feined information of the alleged token gross sales however now claims the bought GALA belonged to him — which Schiermeyer’s go well with rejected.
Thurston can be alleged to have stolen licenses to run Gala ecosystem nodes which may earn GALA tokens — promoting the licenses and preserving the proceeds.
The identical day, Thurston’s True North filed a lawsuit in opposition to Schiermeyer — equally on behalf of Gala — claiming he induced Gala to “dump and waste tens of millions of {dollars} in firm property” and lent tens of millions of Gala’s funds to himself for private purchases.
Schiermeyer additionally allegedly created Gala entities in Switzerland and Dubai and made himself the controlling shareholder to pursue enterprise alternatives, in keeping with the lawsuit.
True North claims Schiermeyer operated Gala with out enter from Thurston — a Gala director — and gave incomplete or incorrect info and company information to Thurston “regardless of repeated requests.”
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Schiermeyer’s go well with requested Thurston be eliminated as a Gala director and seeks numerous reduction and damages funds together with the return of the allegedly stolen GALA.
Thurston equally requested that Schiermeyer be faraway from Gala and sought no less than $750 million in numerous damages and reduction.
In March, the US Securities and Change Fee sued Thurston, True North and one other firm he based known as Inexperienced United for promoting investments in an allegedly pretend crypto mining scheme.
Attorneys for Schiermeyer and Thurston had been contacted for remark however didn’t instantly reply.
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