Across Protocol Accused of Manipulating DAO Governance for $23 Million Transfer

Across Protocol, a decentralized autonomous organization (DAO), has been accused of manipulating its governance process to transfer $23 million worth of tokens to Risk Labs, a company connected to its core team. The controversy was brought to light by Ogle, the pseudonymous founder of the Layer-1 project Glue, who raised concerns on X about the manipulation of the voting process within the DAO.

The allegations suggest that the decentralized governance process was compromised, raising questions about the transparency and integrity of DAO operations in the cryptocurrency space. Ogle asserted that Across Protocol, despite being a well-respected entity in the crypto community, is essentially a faux DAO, where governance proposals are orchestrated to benefit insiders.

Hart Lambur, the founder of Across Protocol and Risk Labs, has vehemently denied these claims. He emphasized that Risk Labs is a Cayman Islands-based nonprofit with no shareholders, thereby dismissing any potential conflicts of interest. The controversy centers around two key proposals. The first proposal received significant support, with 13.1 million tokenholders voting in favor, resulting in a 97% approval rate. However, the second proposal, which sought 50 million ACX tokens for back-dated funding, only passed due to the votes cast by insiders. Analysis indicates that a substantial portion of the voting power came from wallets linked to Hart Lambur and members of the Risk Labs team, casting doubt on the fairness of the DAO's decision-making processes.

Ogle highlighted that the second proposal did not guarantee the use of funds for Across and lacked official agreements between the two companies. He also noted that on-chain data revealed secret agreements among Risk Labs team members. Ogle further pointed out that the second-largest voting wallet, accounting for nearly 14% of the total vote, was initially funded by Hart Lambur. In response, Lambur asserted that team members purchased tokens independently and voted publicly, refuting claims of hidden voting. He also questioned Ogle's credibility, citing potential conflicts of interest due to Ogle's ties to competing projects.

The allegations have sparked significant community backlash, with many questioning the legal governance process within the DAO. The 150 million tokens involved in the controversy would be worth over $22 million, based on the value of ACX at the time of the allegations. Additionally, there have been accusations of insider trading related to the ACX Binance listing. Bryan Pellegrino, the founder of LayerZero, suggested that Lambur may have had inside information when purchasing ACX tokens before the surprise listing on Binance in December 2024. Lambur denied these allegations, stating that he had no prior knowledge of the listing and found out about it on Twitter like everyone else. He also mentioned that Across had paid no listing fee and received no advance notice from Binance. Pellegrino, however, pointed to Across's recent tweet about months of communication with Binance's listing team, suggesting that most companies limit trading during such discussions.