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Huobi and Gala Games to Give $50M to Victims of pGala Scheme

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Crypto exchange Huobi and Web3 gaming platform Gala Games will distribute up to $50 million worth of cryptocurrencies and software licenses to GALA token holders who lost money in a scheme involving the latter’s utility token last fall, Huobi announced Monday.

Huobi has pledged $25 million worth of cash and user benefits, including 15 million tether (USDT) and $10 million equivalent equity compensation to the plot’s victims. Gala Games will offer its affected users $25 million worth of node licenses. The firms will begin compensating victims within the next week.

The announcement comes five months after a bad actor minted $1 billion worth of pGALA, a wrapped version of GALA that trades on BNB Chain, and offloaded the tokens on decentralized exchanges including PancakeSwap, plunging the price of the GALA 94%. PNetwork, Gala Games’ cross-chain interoperability bridge, said at the time that it coordinated a "white hat attack" on itself to prevent bad actors from absconding with users' money.

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User refunds are just one measure Huobi and Gala Games are taking to address the fallout of the pGALA scheme. In March the gaming network filed a lawsuit seeking $27.7 million in damages and compensation from pNetwork.

Huobi said Monday that it has joined the suit to “recover losses, defend its reputation, and the interests of its users.”

Read More: Huobi Exchange Users Furious After GALA Holdings Are Converted to ‘Meme Token’