Huobi and Gala Games have recently taken legal action against pNetwork over the issuing of the $1 billion pGALA token on BNB chain, which resulted in a dramatic price drop of nearly 97%. This news arose just weeks after Huobi and Gala Games both pledged to provide users $50 million in compensation for losses incurred from the incident. Specifically, Huobi announced that it would provide $25 million in cash and its equivalent in equity, while Gala Games offered up $25 million worth of node compensation.

The recent lawsuit postured by Huobi and Gala Games is based on the negligence in security that allegedly caused hazard to Gala Game's reputation as well as its relationship with trading platforms. Not to mention, pNetwork allegedly failed to execute a meaningful recovery plan, impacting users and the GALA token's market perception. In light of this, both platforms have taken full responsibility to help the pGALA victims compensate for losses, offering a respective $25 million to each platform.

The incident shines a light on the importance for cryptocurrency projects to demonstrate the highest calibre of responsibility when it comes to security and management of token issuance and exchange, as it ultimately reflects on the investor's confidence and trust in the project. It is of the utmost significance for companies and project founders to remain accountable for their actions, as not doing so can have cost-bearing effects across the platform.

It can be seen from this announcement that Huobi and Gala Games have firmly taken responsibility of the incident and implementation of recovery plans. The two platforms have dedicated a significant amount of capital to ensure that the victims of the pGALA incident are able to take their deserved compensation. To ensure that investors are fully informed on their assets, platforms should ensure to exercise caution and follow regulations to retain and trust.



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