Across Alliance Denies $23 Million Embezzlement Allegations

Across Alliance, a prominent player in the decentralized finance (DeFi) space, has issued a statement refuting allegations of misappropriation of funds and vote manipulation. The allegations were made by the founder of Glue, who accused the Across Protocol team of using privacy to manipulate DAO voting and embezzle funds from the protocol treasury.

In response, Hart Lambur, co-founder of Across, published a post denying the accusations. Regarding the allegation of unlawfully withdrawing $23 million for personal benefit, Hart stated that Risk Labs, the non-profit foundation governing the funds, operates under Cayman law. The funds are used for protocol development, and Hart himself has a modest annual salary of $100,000, with no token rewards received. The usage of funds aligns with DAO practices and has supported the development of Across v3 and v4.

Addressing the accusation of governance process manipulation by insiders, Hart mentioned that team members are free to use the tokens they purchased to vote. He highlighted that Kevin's wallet (maxodds.eth) is public, and Reinis's vote is also legitimate. The proposals passed without any opposing votes, and the process is transparent.

This controversy highlights the complexities and challenges within the DeFi ecosystem, where transparency and governance are paramount. The allegations and subsequent denial underscore the importance of clear communication and adherence to established protocols within decentralized organizations. The situation serves as a reminder of the need for robust governance mechanisms to ensure the integrity and trustworthiness of DeFi projects.