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- One of the leading cryptocurrency exchanges, Huobi Global, released an important notice and gave its statement on the GALA incident, on November 06, 2022.
The crypto exchange responds to pNetwork’s statement on the GALA incident as the exchange believes the behavior of pNetwork was not a “White-hat Action,” a hacker intentionally theft attack for malicious profit.
The exchanges mentioned three main reasons:
- Huobi Global gave the first reason as that it never had any prior communication with the pNetwrok team which states it would harm the GALA token vulnerability by issuing additional tokens. pNetwork fully hid its attack from the exchange and then after 50 minutes contacted the exchange.
Huobi Global further added that an additional 55.6 Billion tokens were issued to carry-out the attack by exploiting the loopholes in the contracts. At that time Huobi did not give any reaction time.
Huobi then did the investigation over this GALA happening and found that the vulnerability caused by pNetwork engineers mistakenly left a key in the contract 67 days ago, resulting in some hidden risks for subsequent tragedies.
- The exchange gave its second reason as there is no evidence that anyone will exploit this vulnerability to attack. pNetwork itself exploits this vulnerability for malicious profit. Huobi explained the condition as there are more security solutions to select and still the vulnerability existed for 67 days.
The pNetwork team chose to actively attack the vulnerability within 50 minutes, which issued an additional 55.6 Billion tokens and made massive profits.
Huobi estimates that during the attack pNetwork earned more than 4.5 Million US dollars. and the cumulative profit exceeds 10 Million US dollars. Hence, it clearly shows that the purpose of the attack is just for ‘profit’.
- Lastly, Huobi Global added that pNetwork argues that the additional issuance of 55.6 Billion Tokens is only to obtain a liquidity pool worth around 400,000 US dollars, and the exchange called it ‘groundless’.
Huobi also raised the question as Why did pNetwork and the GALA team insist on issuing an additional 55.6 Billion GALA without giving the third-party any reaction time, while the 400,000 USD liquidity pool funds in the pool still belong to users.
Huobi alleges that the use of “white hat attack” was just for a guise to direct towards the hacker attacks and also to avoid the legal sanctions.
On November 06, 2022, Gala Games, gave its official statement regarding the situation with $pGALA and the pNetwork.
And, on the other hand, pNetwork also shared a tweet and kept its point of view over the whole happening.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
