- Huobi will offer $25 million in cash and user benefits
- Gala Games will start offering node licenses worth $25 million
Huobiand Gala Games have come up with a compensation plan to cover the losses of pGALA incident victims. Huobi will offer $25 million in cash and user benefits, comprised of equity worth $10 million and Tether worth $15 million.
Likewise, Gala Games will start offering node licenses worth $25 million as compensation this week, Bankless Times learned from a blog post published on April 3.
What caused the pGALA incident?
Reportedly, the pGALA incident was actually the outcome of a malicious plan by pNetwork. The routing protocol worked with hackers to mint pGALA tokens worth $1 billion on BNB Chain, then withdrew them from the liquidity pool, making away with more than $10 million.
Huobi and Gala are suing pNetwork
The newly minted tokens were sold on PancakeSwap on November 3, which caused GALA tokens on the BNB Chain to plummet from $0.04 to $0.0000045. GALA has since recovered much of its losses, rising to a high of $0.038 on March 6.
Weakness was in protocol’s smart contract
The protocol pNetwork exploited a vulnerability on its smart contract, issuing just over 55 billion pGALA to perpetrate the attack less than an hour after getting in touch with other exchanges. This was far from enough time to prepare an adequate response.
According to an analysis after the fact, the loophole on the smart contract was mistakenly created by a pNetwork engineer, who had embedded a key in it more than two months before the incident.
Huobi and Gala will work together to sue pNetwork, defend their reputation, recover losses, and protect the interests of their users.
“White hat” operation was an excuse
According to Huobi, pNetwork’s operation was not “white hat” like the latter claimed. Profit was the ultimate goal of this malicious act. Huobi accused pNetwork of making excuses to avoid legal consequences.
Huobi will launch ROCK in place of pGALA. ROCK is a Web3 game token created by Huobi, Gala Games, and TRON. Its total supply is more than 6 billion.
