### In the early morning of November 4, 2022, users noticed an apparent exploit in pGALA (a token pegged to GALA) running on the Binance Smart Chain: an impossible one billion dollars worth of GALA had been minted twice, and was now being drained from the liquidity pool.

As of a few hours ago, GALA was the number one searched coin on Coingecko, on account of a rapid price drop after what appeared to be an exploit where a hacker minted astronomical amounts of the pGALA token.

The pNetwork, the cross-chain solutions provider that provided pGALA as the tokenized form of GALA on its Binance Smart Chain presence, [announced](https://twitter.com/pNetworkDeFi/status/1588266897061031936) that they had "misconfigured" their network bridge, affecting pGALA's security. This lapse required a redeployment of pGALA, a move that meant they would need to drain the entire pGALA-BNB liquidity pool on Pancake Swap, the Decentralized Finance exchange.

This move to drain the liquidity pool inovlved the minting of a vast amount of tokens in order to dilute the entire pool and eventually drain it of all value. Prior to this move, they took a snapshot of the pool, in preparation to reimburse everyone for the tokens they were about to lose (without prior notice or warning, mind you-outside the series of tweets they sent at 428 AM, November 4, 2022). 

When users began to notice the move to dilute and drain the pool, news spread that it was a hack or an exploit. The price of GALA on ethereum and on exchanges dropped significantly, even if the incident affected the tokenized form of GALA, and not the true token. Uncontained, a massive dilution of a pegged token, even if on a different chain, could certainly affect the value of the token on its actual chain, so it was natural that many users were fleeing to safety and dumping their tokens. 

Community members did what they could to inform the public about pNetwork's series of tweets on the matter- where they claimed that the "attack" was a security measure performed to protect users. The tweets clarified that the existing pool on PancakeSwap was considered "invalid"- a move that some might see as a sudden seizure of assets, despite their promise to compensate users.  

Interestingly, there are no updates on the official website of pNetwork as of this posting, but we will be monitoring their response to the incident, and we will certainly report on how they have been compensating -or failing to compensate- affected users. 

In the early morning of November 4, 2022, users noticed an apparent exploit in pGALA (a token pegged to GALA) running on the Binance Smart Chain: One billion dollars worth of GALA had been minted twice, and was now being drained from the liquidity pool.

Fri Nov 04 2022

What Really Happened to GALA? An Astronomical Exploit or a white hat move?

FTX Creditors File Class Action Against Bankruptcy Law Firm

Revolut to Distribute $1.2 Million in BONK

Starknet Foundation’s Plan to Distribute STRK Token

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

DecenTrader Founder Notes Bearish Signal

Revolut to Distribute $1.2 Million in BONK

Fri Nov 04 2022 What Really Happened to GALA? An Astronomical Exploit or a white hat move?

FTX Creditors File Class Action Against Bankruptcy Law Firm

Revolut to Distribute $1.2 Million in BONK

Starknet Foundation’s Plan to Distribute STRK Token

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

DecenTrader Founder Notes Bearish Signal

Revolut to Distribute $1.2 Million in BONK

Fri Nov 04 2022

What Really Happened to GALA? An Astronomical Exploit or a white hat move?