The Gala Games community suffered a scare late November 3rd after a wallet minted over $1 billion in GALA tokens that reduced the asset’s value by nearly 30%.
While blockchain security firm PeckShield expressed concerns about a possible attack, the pNetwork team quickly replied that it was responsible for the white hat attack.Hi
@GoGalaGames, you may want to take a look: https://t.co/IfUMdTHz07
PeckShield Inc. (@peckshield) November 3, 2022
The pNetwork team said it realized that the pGALA tokens are no longer secure and therefore coordinated the attack to prevent malicious actors from taking advantage of the situation.
1/n pGALA on BSC Notice: A misconfiguration of the https://t.co/Tpj4G7IkUe bridge necessitated the redeployment of pGALA. We’re working directly w/the Gala team and w/ exchanges to provide the necessary pGALA balances to restore functionality of pGALA deposits & withdrawals.
pNetwork ???? (@pNetworkDeFi) November 3, 2022
The pNetwork team discovered that the problem was caused by “p.Network bridge misconfiguration”. However, GALA tokens on Ethereum (ETH) and the underlying bridge collateral remain secure.
The GALA bridge has been temporarily suspended and a new pool will be created. According to the team, new pGALA tokens will be sent to restore each address to its previous location.
However, after the announcement, those who purchased pGALA through PancakeSwap risk losing everything as the newly purchased pGALA cannot be recovered.
Arbitrage investors profit
Arbitrage traders took advantage of a white hat attack on the Gala token in the PancakeSwap pool, bringing $6.5 million to a trader.
2/ Then he transferred 21.1M $GALA ($674,701) to #Binance before Binance closed deposits and withdrawals, selling at about $0.032.
And transferred 385.8M $GALA ($5.79M) to #Huobi, selling at about $0.015.He made a total profit of $6.5M!https://t.co/jz2vGqtmEF pic.twitter.com/nxV2G6kc1A
— Lookonchain (@lookonchain) November 4, 2022
Arbitrage traders found and bought tokens discarded from PancakeSwap, moved the coins to Huobi and immediately started selling them. On-chain sleuth continued the GALA price on Huobi to drop 99% from $0.04 to $0.0003.
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The online detective said that GALA’s 24-hour trading volume on Huobi is 25.65 billion tokens worth $134.5 million. The central exchange had to temporarily delist the GALA token due to “material and uncontrollable risks from the major accident”.
