Gala Games founders biff over $130M theft, corporate waste allegations

Jesse Coghlan5 hours agoGala Games founders biff over $130M theft, corporate waste allegationsGala co-founder Eric Schiermeyer allegedly enriched himself, says his founding peer Wright Thurston, while Schiermeyer says Thurston stole millions.2567 Total views28 Total sharesListen to article 0:00NewsJoin us on social networksThe co-founders of blockchain gaming platform Gala Games have locked horns in court over two separate lawsuits, one alleging the theft of $130 million worth of Gala (GALA) and the other alleging corporate waste.

On Aug. 31, Gala co-founders Wright Thurston and Eric Schiermeyer filed lawsuits against one another in a Utah District Court.

On behalf of Gala, Schiermeyer — also the firm’s CEO — alleged that in early 2021, Thurston and his investment firm, True North United Investments, stole around $130 million worth of a token tied to the Gala Games ecosystem.

Schiermeyer’s suit claims the GALA tokens were moved to a wallet under the company’s control but were later moved into 43 other wallets by Thurston, who, when confronted about the movements, said he was holding the tokens in secure wallets for Gala.

He later moved the tokens from the wallets and exchanged or sold them in a “complex web of obfuscatory transactions” between September 2022 and May 2023, the suit alleged.Excerpt from Schiermeyer"s suit against Thurston regarding the allegedly stolen GALA. Source: PACER

The suit claimed Thurston later feined knowledge of the alleged token sales but now claims the sold GALA belonged to him — which Schiermeyer’s suit rejected.

Thurston is also alleged to have stolen licenses to run Gala ecosystem nodes, which can earn GALA tokens — selling the licenses and keeping the proceeds.

The same day, Thurston’s True North filed a lawsuit against Schiermeyer — similarly on behalf of Gala — claiming he caused Gala to “sell off and waste millions of dollars in company assets” and lent millions of Gala’s funds to himself for personal purchases.Highlighted excerpt from Thurston’s suit against Schiermeyer claiming the latter used Gala’s assets for personal gain. Source: PACER

Schiermeyer also allegedly created Gala entities in Switzerland and Dubai and made himself the controlling shareholder to pursue business opportunities, according to the lawsuit.

True North claims Schiermeyer operated Gala without input from Thurston — a Gala director — and gave incomplete or incorrect information and corporate records to Thurston “despite repeated requests.”

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Schiermeyer’s suit requested Thurston be removed as a Gala director and seeks various relief and damages payments, including the return of the allegedly stolen GALA.

Thurston similarly requested that Schiermeyer be removed from Gala and sought at least $750 million in various damages and relief.

In March, the United States Securities and Exchange Commission sued Thurston, True North and another company he founded, called Green United, for selling investments in an allegedly fake crypto mining scheme.

Lawyers for Schiermeyer and Thurston were contacted for comment but did not immediately respond.

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