Huobi HTX Completes Multi-Million Dollar pGALA Compensation

Huobi HTX Compensates Users Affected by pGALA incident

Huobi HTX has recently finalized a multi-million dollar restitution to those impacted by the pGALA token issue. This includes various compensations and rights, along with Gala node provisions. Additionally, Huobi HTX has taken measures to eliminate the ROCK tokens on the TRON network, transitioning them to the GALA blockchain.

The pGALA debacle began when pNetwork, in collusion with cybercriminals, exploited a cross-chain bridge flaw to create and then liquidate an enormous sum of pGALA on the BSC chain, pocketing profits that reportedly soared past 10 million dollars.

This scheme, coupled with pNetwork's intentional omission of facts, led to a drastic devaluation of the related cryptocurrency and inflicted substantial financial damages on several entities, including Gala Games and Huobi HTX.

Back in April 2023, Huobi HTX disclosed its agreement with Gala Games on a comprehensive reparation strategy for those harmed by the pGALA token issuance. The settlement has reached an impressive tens of millions in USDT and company shares from Huobi HTX, while Gala Games is set to offer node compensations valued at 25 million dollars. This week marks the completion of this extensive compensation initiative.

The pGALA Issuance Attack

The pGALA incident, which came to light in early November 2022, involved pNetwork issuing approximately $1 billion worth of pGALA tokens on the BSC using a cross-chain bridge vulnerability. This massive issuance led to the tokens being sold and withdrawn from liquidity pools, resulting in estimated profits exceeding $10 million for the perpetrators. 

The sudden and drastic drop in the price of GALA tokens on the BSC chain caused significant losses for various third parties, including Gala Games and Huobi HTX. Despite initial claims by pNetwork to conduct a "white hat" operation to protect user funds, the aftermath indicated intentional concealment and manipulation, causing widespread financial damage.

Initial Response and Legal Actions

In response to the attack, Huobi HTX took immediate measures to mitigate user losses. By April 2023, Huobi had negotiated a comprehensive compensation plan with Gala Games. 

This plan outlined a $50 million compensation package, shared equally between Huobi and Gala Games. Huobi committed to providing $25 million in USDT and equity compensation, while Gala Games pledged $25 million worth of node licenses. This joint effort underscored both parties' commitment to addressing the incident's impact and restoring user confidence.

Furthermore, both Huobi and Gala Games decided to pursue legal action against pNetwork to seek accountability and additional compensation for the damages incurred. Gala Games officially filed a lawsuit against pNetwork, seeking $27.7 million in damages. Huobi announced its intention to collaborate with Gala Games on this legal front, aiming to recover losses and defend user interests.

Conclusion

Huobi HTX's proactive and collaborative approach in addressing the pGALA issuance attack demonstrates a robust commitment to protecting user interests and advancing the blockchain industry. By providing substantial compensation, pursuing legal action, and establishing strategic partnerships, Huobi and Gala Games have set a precedent for responsibility and accountability in the crypto space.

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