Across Protocol's decentralized autonomous organization (DAO) is currently under intense scrutiny following allegations that its founders siphoned approximately $23 million in funds to their own for-profit company, Risk Labs. These claims, made by an on-chain sleuth, suggest a manipulation of DAO votes, raising significant questions about the transparency and integrity of the protocol's governance.
Allegations of Fund Misuse
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Ogle, a pseudonymous founder and on-chain sleuth, initiated the accusations via an X (formerly Twitter) thread, claiming that Across Protocol's co-founders and insiders orchestrated governance proposals to secretly extract funds from the DAO's treasury.
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The core of the accusation centers on two DAO proposals. The first, approved two years ago, saw 13.1 million tokenholders vote in favor, with over 97% approval. The second, a year later, involved Risk Labs requesting 50 million ACX tokens for "retroactive funding."
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Ogle alleges that without the team's votes, the second proposal would not have reached quorum, implying a deliberate manipulation of the voting process. The 150 million tokens involved are estimated to be worth over $22 million.
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Furthermore, Ogle claims that the proposal did not guarantee the funds would be used for Across, and on-chain analysis suggests many Risk Labs team members covertly approved the proposal, with a significant voting wallet linked to Hart Lambur, a founder of both Risk Labs and Across.
Risk Labs' Defense and Nonprofit Status Questioned
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Hart Lambur has vehemently denied the allegations, stating that Risk Labs is a Cayman Islands-based nonprofit with no shareholders and operates under fiduciary obligations. He provided a certificate of incorporation to support his claim.
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However, the nonprofit status of Risk Labs has been called into question. While the company is registered as a "foundation company" in the Cayman Islands, such entities can serve various purposes, including commercial ones. Risk Labs is not listed among registered nonprofit organizations.
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Lambur also defended team members' right to vote, stating they acquired tokens with their own funds and are free to participate in proposals like any other DAO member. He confirmed multiple team members voted but denied any secrecy, asserting that addresses are publicly disclosed.
Potential Conflicts of Interest
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Lambur has also raised concerns about Ogle's credibility and potential conflicts of interest, highlighting Ogle's connections to competing projects such as LayerZero and Stargate. He noted that Bryan Pellegrino, founder of Stargate and LayerZero, retweeted Ogle's post almost immediately.
Key Takeaways
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Allegations suggest Across Protocol founders manipulated DAO votes to funnel $23 million to their company, Risk Labs.
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Risk Labs' nonprofit status is under scrutiny despite claims of operating as a foundation company.
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The dispute highlights ongoing challenges in decentralized governance regarding transparency and potential conflicts of interest.
Sources
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Across Protocol Team Accused of Moving $23M to Own Company, Cointelegraph.
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