South Korean cryptocurrency exchange Bithumb has issued a statement announcing that the token GALA, issued by blockchain gaming platform Gala Games, has been designated as a warning item by the Digital Asset Exchange Association (DAXA) of South Korea. As a result, Bithumb has temporarily suspended GALA deposits and withdrawals. The resumption of withdrawal services will be notified separately.
Earlier today, Gala Games was subjected to a hacker attack, resulting in the creation of an additional 5 billion GALA tokens (approximately 210 million USD). Although Gala Games has frozen the attacker’s wallet address, the DAXA has still decided to list GALA as a warning item.
What is DAXA? In 2022, the collapse of Luna and UST, products of the renowned South Korean blockchain team Terraform Labs, resulted in significant losses for many South Korean investors. In response, the top five South Korean exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, voluntarily formed the Digital Asset Exchange Association (DAXA) to help investors guard against token volatility and fraud threats. Additionally, DAXA member companies have the authority to take measures such as urging cautious investment, designating warning items, and terminating transaction support to protect investors.
Hacker creates 5 billion GALA tokens: On the other hand, Gala Games was targeted by a hacker attack this morning. According to on-chain data, the hacker minted 5 billion GALA tokens and sold 600 million GALA tokens (approximately 25.36 million USD) on the market, while the remaining 4.4 billion GALA tokens are still held in the hacker’s address.
Following the incident, Gala Games co-founder Eric Schermeyer urgently issued a statement stating that the attack vulnerability has been fixed, and the GALA ETH contract is protected by a multi-signature wallet. He also mentioned that the team has identified the attacker and is currently collaborating with US authorities. Additionally, Gala Games’ official statement assured that the hacker’s address has been frozen and there is no need to worry about a large number of tokens being sold from that address.
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