Eric Schiermeyer, the CEO of Gala Games, acknowledged a "security incident" on Tuesday that led to the unauthorised transaction of 600 million GALA (CRYPTO:GALA) tokens.

Schiermeyer attributed the mishap to "messed up" internal controls which allowed a hacker to steal and subsequently sell $23 million worth of GALA tokens, following an alarming event where 5 billion GALA, valued at around $200 million, were illicitly minted and sold in segments.

The issue came to light on May 20 at around 7:32 pm UTC when blockchain enthusiasts discovered the abnormal minting through a transaction on Etherscan.

This discovery promptly caused a significant 20% fall in the token's value, plunging to a 24-hour low of $0.038, down from its earlier high.

Despite this substantial impact, the GALA token experienced a slight recovery, reaching $0.041, suggesting some resilience amidst the breach.