Crypto Exchange Huobi Releases Statement On GALA Hack By CoinEdition

Crypto Exchange Huobi Releases Statement On GALA Hack

  • Cryptocurrency exchange Huobi Global released a statement on the GALA incident.
  • The exchange said it was a malicious hack driven by profit.
  • Huobi apologized to users affected by pNetwork’s actions.

Cryptocurrency exchange platform Huobi Global released a statement on the GALA incident that occurred on November 3, leading to a 20% plunge in the GALA token price. The cryptocurrency exchange clarifies that this incident was in fact not a “white operation” but a “malicious hack driven by profit and bad faith.”

Huobi Global said that DeFi routing infrastructure and gaming tokens company, pNetwork, responsible for GALA tokens, never communicated with Huobi about its intentions to attack the misconfiguration loophole by issuing $1 billion worth of valueless tokens.

Moreover, Huobi claimed that pNetwork exploited the loophole on its own smart contract and minted 55.6 billion PGALA tokens to continue the hack for 50 minutes after contacting other exchanges. In turn, not leaving enough time for the exchanges to respond.

According to the postmortem investigation conducted by the exchange, it was found that the misconfiguration was the result of a pNetwork engineer embedding a key in the smart contract 67 days before the hack transpired.

In addition, Huobi believes a responsible team would leave at least a 24-hour response window for exchanges to move to the new token. The statement read:

There is no evidence whatsoever that anyone would leverage this loophole to initiate an attack other than pNetwork who is eager to exploit it for profit.

Lastly, Huobi argued that minting such a huge number of tokens was “groundless and farfetched” as both pNetwork and GALA teams could anticipate the devastating implication of the operation. The statement further asserted that pNetwork’s hack was under a disguise of “white hat” to prevent legal consequences.

Summing up all the factors, the world’s leading virtual asset trading platform apologized to all exchange users victimized by pNetwork’s actions and promised to protect their interests and assets by gathering and representing the victims and filing class action lawsuits and police reports to pursue criminal charges against the perpetrators from pNetwork.

Additionally, Huobi Global is offering attackers funds from their $1 million bounty with promises to not pursue any legal action in return of the “unjustified gains.”

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