February 8, 2023

Huobi Debunks Notions Of Gala’s Hack Being A White Hat Move

GameFi project Gala games and Decentralized Finance (DeFi) protocol pNetwork recently suffered a network breach. Shortly after, the chain developers rested the minds of the community, calling the break-in a white hat act. But Huobi Global rebuffed the claim, accusing pNetwork of profiting $4.5 million from the attack.

Huobi Says Gala’s Hack Was Not A White Hat Act

A hacker gained control of pNetwork on November 3 and minted $2 billion worth of Gala tokens on the BSC blockchain. However, they soon sold off a fraction on Pancakeswap worth 12,977 BNBs. At the time of sale, the monetary value totaled $4.5 million.

As a result, a Pancakeswap pool got milked, sparking a dump in the asset’s prices. Lookonchain, a crypto analytic platform, revealed that some traders counted the situation as an opportunity to buy and dump the token on Huobi. Hence, crashing the price to $0.0003 from $0.04.

This caused worry about a multi-million dollar hack in the community. To address the situation, Jason Brink, Gala blockchain gaming president, said everything is fine on Twitter. He explained that the activity was the network’s measure to handpick vulnerabilities hidden within the system.

That way, it can protect its liquidity pool. Meanwhile, Huobi Global expostulated Gala’s side of the story. The crypto exchange declared that the hacking was never a white hat move.

Huobi Pledges To Bring pNetwork To Book 

Instead, pNetwork executed the hack to steal from itself. And terming it a white hat act was a strategy to get law agencies off its tail.

Huobi asserted that this move led to many users losing a substantial amount of their funds. Hence, it will ensure that pNetwork is brought to justice for taking on such conquest to its users’ detriment. The bourse promised to represent customers ready to file a lawsuit against pNetwork.

Huobi is prepared to supply a bounty price of $1 million if the hackers remit the stolen funds. In addition, the exchange will drop its charges against pNetwork. 

Meanwhile, pNetwork fired back at Huobi for raising false allegations against it. The Decentralized Finance (DeFi) protocol voiced that its intentions were pure and in tandem with the Gala network. Hence, it will file a case against Huobi for airing false claims. 


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