{"id":273009,"date":"2022-11-06T19:00:32","date_gmt":"2022-11-06T19:00:32","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=273009"},"modified":"2022-11-06T21:43:47","modified_gmt":"2022-11-06T21:43:47","slug":"per-huobi-alleges-pnetwork-made-over-4m-from-its-gala-white-hat-attack","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/per-huobi-alleges-pnetwork-made-over-4m-from-its-gala-white-hat-attack\/","title":{"rendered":"Huobi alleges pNetwork made over $4M from its Gala \u2018white hat attack\u2019"},"content":{"rendered":"

Huobi has alleged<\/a> that the GALA<\/a> incident<\/a> was not a white hat operation as pNetwork claimed, but an attack that gave the protocol a $4.5 million profit.<\/p>\n

According to the exchange, there were other “premeditated operations” during the incident, which resulted in over $10 million in profit for the parties involved. Huobi continued that the pNetwork team did not inform it that it would attack the pGALA token despite communicating with it 50 minutes before the incident.<\/p>\n

Additionally, there was no evidence that someone would have exploited the vulnerability, given that the said vulnerability had been in the contract for over two months. Huobi said pNetwork's team's eagerness to launch the attack suggested malicious intent to profit from the incident.<\/p>\n

The exchange also described the issuance of 55.6 billion GALA tokens to save a pool worth about $400,000 as absurd and, therefore, a groundless reason.<\/p>\n

Huobi converts users' GALA tokens to pGALA<\/h2>\n

Meanwhile, several Huobi users were infuriated after the exchange converted their GALA<\/a> tokens into pGALA.<\/p>\n

The crypto exchange decided to delist GALA after a wrapped version supported by pNetwork; pGALA lost its value<\/a> due to the developer minting excess tokens in a white hat attack.<\/p>\n

The excess new tokens sent GALA's price on Huobi to nearly zero, with several traders trying to take advantage of the situation by buying the heavily discounted tokens cheaply.<\/p>\n

Following this incident, Huobi decided to delist the GALA\/USD pair and convert GALA to pGALA. The exchange announced<\/span><\/a> that it chose to protect users' assets.<\/p>\n

The exchange also referred<\/span><\/a> to PGALA as a meme token, saying it is unrelated to GALA. However, users were not pleased with the development, criticizing the exchange's decision on social media.<\/p>\n

Huobi users lament<\/h2>\n

A user claimed<\/span><\/a> they bought GALA 12 hours before the incident and expressed surprise that their assets had also been converted.<\/p>\n

Another user wanted the US SEC to bring enforcement actions against the exchange for arbitrarily changing his tokens.<\/p>\n

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Wow amazing day!
I buy $gala<\/a> 12hour ago at huobi. But huobi said it is pgala.
Suddenly huobi suspended gala\/usdt without announcement.
I have some questions. pic.twitter.com\/pn3jy1bGws<\/a><\/p>\n

— Painkiller \ud83d\udca9 (@joker_8282) November 4, 2022<\/a><\/p><\/blockquote>\n