Dough Finance Clients Await Compensation After $2.5M Hack

Clients of Dough Finance, a trading platform launched by World Liberty Financial co-founder Chase Herro, are still awaiting compensation after a hack resulted in the loss of millions of dollars in user funds. The incident, which occurred on July 12, 2024, saw hackers exploit a vulnerability in Dough Finance’s code, draining $2.5 million from investor Jonathan Lopez’s account. Lopez, who had invested $1 million in cryptocurrency through the platform, had been guided by Herro on how to use the platform and had increased his holdings through a process called "looping."

In response to the hack, Dough Finance issued a statement acknowledging the security breach and expressing regret for the incident. The company pledged to enhance its security measures and work diligently to protect users and their assets. However, by August 18, Herro and his long-standing business partner, Zachary Folkman, had allegedly stopped responding to the Telegram channel, leaving clients in the lurch. The situation was further complicated by the launch of World Liberty Financial the following month, with Herro and Folkman named as partners in the new crypto venture.

In August 2024, Dough Finance announced plans to compensate affected clients by issuing proprietary tokens equivalent to the missing funds, which would be exchangeable for ETH. However, not all clients were satisfied with this solution. Lopez, in particular, has decided to take legal action against Herro, with a lawsuit set to go to trial in April 2026. The outcome of this legal battle remains uncertain, but it underscores the ongoing challenges faced by clients of Dough Finance as they seek to recover their lost funds.

The incident highlights the risks associated with investing in cryptocurrency platforms and the importance of robust security measures. It also raises questions about the accountability of platform founders and their commitment to making clients whole in the event of a security breach. As the legal process unfolds, affected clients will be watching closely to see if Dough Finance and its partners will fulfill their promises of compensation.