Web3 gaming giant Gala Games is facing a legal battle between its co-founders, Eric Schiermeyer and Wright Thurston.
Schiermeyer, the CEO of Gala Games, is suing Thurston, alleging that he misused company assets, self-dealt, and engaged in conflicts of interest. Thurston is countersuing Schiermeyer, alleging that he engaged in poor financial management and lack of transparency.
The charges against Schiermeyer include:
- Misuse of company assets: Schiermeyer allegedly spent millions from Gala Games, including $600M in assets, for personal purposes.
- Self-dealing: He reportedly borrowed millions from Gala Games as personal loans.
- Conflict of interest: He set up entities in Switzerland and Dubai that competed with Gala Games.
- Abuse of power: He blocked Thurston, a Gala Games director, from company decisions.
- Poor financial management: He provided inaccurate or incomplete financial data.
- Lack of transparency: He withheld necessary corporate records from True North.
Thurston is also alleging that Schiermeyer has been using Gala Games’ resources to promote his other businesses, such as the cryptocurrency platform Forte.
The legal battle between the two co-founders is a major setback for Gala Games, which is one of the most successful Web3 gaming companies. The company has raised over $500 million in funding and has over 1.3 million users.
It is unclear how the legal battle will be resolved, but it is likely to have a significant impact on Gala Games’ future.
In addition to the legal battle, Gala Games is also facing other challenges. The company has been criticized for its high fees and its lack of transparency. It is also facing competition from other Web3 gaming companies, such as The Sandbox and Axie Infinity.
The future of Gala Games is uncertain, but the legal battle between its co-founders is a major setback. The company will need to resolve the dispute quickly and effectively if it wants to maintain its momentum.