Huobi and Gala Games have joined forces to make whole many of those affected by the pGALA incident late last year with a $50m coffer and a lawsuit heading the way of pNetwork.
What Is the pGALA Incident?
In early November 2022, the Gala community had quite the shock when the $GALA token on the BNB chain did whatever the antonym of “moon” is: it plummeted from $0.04 to $0.0000045 courtesy of pNetwork. pNetwork is a public network on Ethereum and bridges many blockchains together, allowing users to move assets between chains.
However, the pGALA incident was the result of “pNetwork’s negligence, tortious interference, and intentional concealment” as over $1 billion worth of pGALA tokens were minted on BNB, then sold on PancakeSwap. This of course flooded the supply, causing the price to tank, and led to people buying the cheap tokens and depositing them on other exchanges to sell.
Huobi, a major cryptocurrency exchange, was unaware of this situation due to “pNetwork’s international concealment” and did not stem the bleeding before $GALA’s price on their exchange had dropped from $0.04 to $0.0003. This, of course, led to a lot of losses. As a result, Huobi and Gala Games are pursuing legal action against pNetwork. In the press release, it claims that $27.7 million is being sought for compensation and damages with $25 million estimated as the bill for the latter.
As for Huobi and Gala Games partnership to try to make some of those affected whole, the plan will total $50 million, $25 million each, and will be split in how it is distributed:
Gala Games: $25 million worth of node licenses
Huobi: $15 million in USDT and the equivalent of $10 million in USDT equity compensation
Furthermore, pGALA is being retired — as one might expect — and replaced with the Web3 gaming token $ROCK, of Rock DAO, an initiative setup by Gala Games in conjunction with TRON and Huobi.