Huobi, a cryptocurrency exchange, and Gala Games, a Web3 gaming platform, are taking legal action against pNetwork validators, alleging that they collaborated with hackers and unlawfully issued pGALA tokens.
The two companies are said to have enlisted the help of legal teams to initiate legal proceedings against the pNetwork validators.
They claim that pNetwork enabled hackers to issue $1 billion worth of pGALA tokens, which have caused significant harm to their reputation and users’ interests.
In response, Huobi and Gala Games have announced that they are preparing a compensation plan for the victims of the pGALA incident.
The compensation plan will provide up to $50 million in total, which will be divided equally between Huobi and Gala Games.
Huobi will contribute $25 million in cash and user bonuses, including $15 million in fiat currency and $10 million in non-monetary compensation.
Meanwhile, Gala Games will offer users $25 million worth of node licenses as compensation.The two companies are expected to launch a two-way compensation plan soon.
The pGALA incident occurred in November of last year when pNetwork issued pGALA utility tokens for the Gala Games gaming platform, valued at over $1 billion on the BNB network.
These tokens were then sold on PancakeSwap, causing the pGALA token’s price to plummet by 97%.