In April 2023, HTX announced an agreement with Gala Games to compensate users affected by the pGALA token incident, with the total compensation amounting to millions. Similarly, Gala Games provided $25 million worth of node compensation to the affected users.
ROCK Tokens on TRON Network Burned and Reissued on GALA Chain
HTX has burned the ROCK (formerly pGALA) tokens on the TRON network and reissued them on the GALA chain. Links to the two burn transactions can be found here and here.
The Background: Uncovering the Truth of the pGALA Incident and Recovering Losses, HTX Initiated Compensation Plan in April 2023
On November 4, 2022, at 4 a.m. pNetwork minted over $1 billion worth of pGALA tokens on the BNB chain and sold them on PancakeSwap, causing the GALA token price on the BNB chain to plummet from $0.04 to $0.0000045. Due to the sharp decline in the token price and pNetwork’s intentional concealment and malicious arbitrage, Gala Games and HTX, among other third parties, suffered significant losses.
The perpetrators, pNetwork and hackers, made an estimated profit exceeding $10 million. From 9 a.m. on November 4, HTX issued five announcements about the GALA token anomaly, doing everything possible to recover user losses. HTX actively contacted pNetwork to negotiate and resolve the matter. pNetwork only released a post-incident analysis of the pGala incident at 2 a.m. on November 6th.
In April 2023, HTX supported the rebranding and upgrading of the pGALA project, replacing the old pGALA tokens with new ROCK tokens at a 1:1 ratio. ROCK, launched by Gala Games in collaboration with HTX and TRON, is a Web3 gaming ecosystem token. In the future, ROCK will serve as a tipping token within the Gala Games ecosystem, be used for NFT market fee deductions, and offer priority NFT subscriptions, deeply integrating into the Gala Games ecosystem.
As Promised, HTX’s Compensation Plan Has Been Fulfilled
The pGALA incident was caused by pNetwork’s “negligence, tortious interference, and intentional concealment.” HTX and Gala Games jointly sued pNetwork to recover losses and firmly protect their brand reputation and user interests.
Although HTX suffered significant losses in this incident, it has always prioritized “user interests,” doing everything possible to protect user assets. In addition to promptly issuing announcements and taking measures to recover user losses, HTX also engaged in multiple communications with pNetwork and Gala Games and took legal action to defend its rights.
The pGALA compensation process lasted one year and two months, with HTX making significant efforts, finally completing the compensation in June 2024.
HTX adheres to the principles of putting users first and prioritizing user interests, closely monitoring user asset security, and courageously defending user rights. Facing such incidents, HTX is willing to work with peers in the crypto industry to shoulder responsibilities and jointly maintain industry order, promoting healthy industry development.
The post first appeared on HTX Square.
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