Team behind Across Protocol Allegedly Embezzled $23 Million; Co-Founder Offers Statement in Response
Swipe Left on Across Protocol: Insider Alleges $23M DAO Swindle
Get ready to dive into the murky world of crypto politics! Pseudonymous investigator and founder of Layer 1 project Glue, nicknamed Ogle, has accused the Across Protocol team of pulling a fast one by manipulating DAO votes and stealing nearly $23 million from the Across DAO treasury to fund their private company, Risk Labs.
Here's the lowdown. While Across claims to be all about decentralized governance, Ogle claims that team insiders, including project lead Kevin Chan and CEO Hart Lambur, orchestrated sneaky governance proposals to snag huge grants from the DAO. These so-called community-friendly proposals were, in reality, a cunning move to funnel money to Risk Labs.
From DAO to Risk Labs: A Game of Deceit
Ogle, who happens to be an advisor for Donald Trump-backed WLFI, asserted that behind-the-scenes evidence indicates that key wallets tied to Chan, including "maxodds.eth," and others funded by Lambur and team members, played a pivotal role in passing proposals that may not have reached quorum without insider support.
Let's talk about the 2023 proposal that moved 100 million ACX (approximately $15 million at the time) to Risk Labs under terms promising no sales for two years. However, later discussions suggested token option sales to strategic investors, which contradicted the initial claims. A subsequent proposal seeking 50 million ACX ($7.5 million at the time) also passed with heavy insider wallet support, with Chan's wallets accounting for nearly half of the "yes" votes.
This pattern, according to Ogle, indicates that the team proposed and passed grants to their private for-profit entity while giving off a false impression of community governance. Ogle pointed out that this flies in the face of DAO principles aimed at protecting token holders from conflicts of interest and ensuring those controlling the protocol can't secretly profit off the community.
Did we mention Ogle's long position in the ACX token and previous transactions with the team? He claims that this misuse of hidden votes to secure large token transfers to Risk Labs drains DAO resources and creates future sell pressure for token holders.
Risk Labs Responds: "We're Innocent!"
Lambur, the Risk Labs CEO, was quick to refute the allegations, calling them "completely untrue." He insisted that Risk Labs is a nonprofit Cayman foundation, not a private for-profit entity, and that it operates under fiduciary responsibilities.
Lambur defended the transparent proposal processes with public discussions and a seven-day voting period with no objections. Team members were allowed to buy ACX tokens with personal funds and vote in DAO proposals without disclosing all wallet addresses, as long as public wallets linked to the founders, like "maxodds.eth," weren't used secretly.
The Across co-founder denied claims that the team sold granted tokens early, highlighting that the Risk Labs multisig still holds more tokens than were granted, aligning with the stated vesting commitments.
Lambur acknowledged room for improvement in terms of explicitly disclosing voting participation within proposals but firmly rejected the notion that the DAO votes were manipulated. He emphasized Across's commitment to transparency and robust protocol growth.
In true crypto drama fashion, Lambur lashed out at Ogle's credibility and motives, tweeting, "Ogle is completely anonymous, although he was recently (and credibly) accused of insider trading on the Trump memecoin. I don't know if that's true or not, but this guy isn't exactly the most credible actor in our space. Ogle: I doubt I'll get an apology from you for your incredibly dishonest post. But I hope you think twice before accusing other good teams in the future."
Stay tuned for more twists and turns in this juicy crypto investigation!
Crypto insider Ogle, an advisor for Donald Trump-backed WLFI, made revelations about Across Protocol's fund mismanagement, claiming that the team allegedly manipulated DAO votes to funnel money from the DAO treasury to their private company, Risk Labs.
The accusations include behind-the-scenes evidence indicating that wallets tied to key team members, such as project lead Kevin Chan and CEO Hart Lambur, played a significant role in passing proposals that may not have reached quorum without insider support.
Risk Labs, on the other hand, has vehemently denied these allegations, with CEO Hart Lambur calling them "completely untrue." Lambur maintained that Risk Labs operates under fiduciary responsibilities as a nonprofit Cayman foundation, and has defended the transparent proposal processes and integrity of their voting system.
