- According to Huobi, the recent pGala crash generated profit of $4.5 million for pNetwork
- After GALA dump, savvy traders bought tokens from PancakeSwap and sent them to Huobi
- The event inflicted massive financial damage on Huobi and its users
Crypto exchange Huobi Global denied the exploit was a white hat move despite claims to the contrary from Gala Games and DeFi protocol pNetwork, who are trying to appease the community. According to Huobi, the recent pGala crash generated profit of $4.5 million for pNetwork, CoinTelegraph wrote.
What happened?
On November 7, a cybercriminal minted Gala tokens worth $2 billion on BNB Smart Chain, earning just under 13,000 BNB after dumping some tokens on PancakeSwap. At the time, the amount in BNB was equivalent to $4.5 million. The token price dropped and the PancakeSwap pool in question was drained.
Price crashed on Huobi
Savvy traders then bought GALA from PancakeSwap and dumped the crypto on Huobi. Thereafter, the price dropped from $0.04 to $0.0003.
Gala Games president Jason Brink tweeted that everything was fine to ease concerns among the community, who began to fear a prospective multi-billion hack might occur. He explained that pNetwork was trying to protect the liquidity pool from vulnerabilities.
Not a ‘white hat move’
Huobi Global accused pNetwork of perpetrating a malicious scheme with the objective of making a profit. According to the exchange, this was just an excuse by the DeFi protocol “to avoid legal consequences.”
Massive losses
Understandably, the event incurred massive financial damage on Huobi and its users. Huobi emphasized that they were prepared to represent the users who suffered damages from the incident and threatened to sue pNetwork.
Huobi added they would offer a $1 million bounty if the purported attackers returned the proceeds from the attack. If this were to happen, Huobi would not pursue legal action.
pNetwork strikes back
In response to these accusations, pNetwork stated they had proof that they acted in good faith and Gala Games cooperated with them in all actions. They termed Huobi’s allegations untruthful. pNetwork vowed to litigate regarding Huobi’s accusations.
