Two top executives at Web3 gaming startup Gala Games are now in litigation against each other — a turn of events that has dropped the price of its token by 13%. Web3 gaming startup Gala Games CEO Eric Schiermeyer recently sued the company’s co-founder Wright Thurston, alleging that Thurston stole 8.6 billion GALA tokens in early 2021 and managed to sell them for $130 million before the company could stop him. Schiermeyer’s suit, filed August 31, also accuses Thurston of a pattern of founding companies that end up insolvent, bankrupt, or tied up in litigation. Thurston, in his own lawsuit filed on the same day, alleges that Schiermeyer took control of Gala Games for himself in order to use company funds for personal purchases, including the financing of a private jet. Gala Games, a Web3 GameFi startup, was co-founded by Thurston and Schiermeyer in early 2019, with each receiving 50% ownership. Michael McCarthy, who is listed by some publications as Gala’s third co-founder, is not mentioned in either lawsuit. The company recently launched Champions Arena, a turn-based RPG game for mobile devices, and also has ventures in blockchain-based music, film, and digital collectibles. In his lawsuit, Schiermeyer alleges that Thurston “has founded numerous companies, most of which have ended up in litigation, insolvent, bankrupt, and/or sued by the SEC,” and claims Gala Games is the only legitimate enterprise in which Thurston has an interest.
Full story : Gala Games CEO sues co-founder alleging $130 million theft, pattern of deception.
