Across Protocol Team Accused of Manipulating DAO Votes for $23 Million Transfer

The Across Protocol team has been accused of manipulating decentralized autonomous organization (DAO) votes to transfer nearly $23 million from the Across DAO treasury to their private company, Risk Labs. The allegations, made by Ogle, a pseudonymous crypto sleuth and founder of Layer 1 project Glue, suggest that the team used a network of undisclosed wallets to steer votes in their favor, enabling them to pass treasury proposals that may not have otherwise cleared quorum.

Ogle claims that project lead Kevin Chan and CEO Hart Lambur orchestrated governance proposals requesting large grants from the DAO, using hidden, insider-linked wallets to create the appearance of broad community support. According to Ogle, on-chain traces suggest that wallets tied to Chan, including “maxodds.eth,” and others funded by Lambur and team members, cast decisive “yes” votes to pass these proposals. One such proposal in 2023 transferred 100 million ACX, then valued around $15 million, to Risk Labs under terms that stated the tokens would not be sold for two years. However, later discussions indicated token option sales to strategic investors, contradicting initial claims. A subsequent proposal seeking 50 million ACX, worth $7.5 million, also passed with heavy insider wallet support, with Chan’s wallets accounting for nearly half of the “yes” votes.

Ogle alleges that the team proposed and passed grants to their private for-profit entity while maintaining a facade of community governance, contradicting core DAO principles designed to protect against conflicts of interest. He also disclosed that he holds a long position in the ACX token and has previously transacted with the team, stating that the alleged misuse of hidden votes to secure large token transfers to Risk Labs not only drains DAO resources but also creates future sell pressure for holders.

In response to the allegations, Lambur refuted the claims, stating that Risk Labs is a nonprofit Cayman foundation, not a private for-profit entity, and operates under fiduciary responsibilities. He explained that the DAO proposals followed transparent processes with public discussions and a seven-day voting period that received no objections. Lambur also noted that team members are allowed to buy ACX tokens with personal funds and vote in DAO proposals without disclosing all wallet addresses, and that addresses like “maxodds.eth” are publicly linked to Chan and were not used secretly. He denied claims that the team sold granted tokens early, pointing out that the Risk Labs multisig still holds more tokens than were granted, aligning with the stated vesting commitments.

Lambur acknowledged room for improvement in explicitly disclosing voting participation within proposals but rejected the notion that the DAO votes were manipulated. He stressed Across’s steady protocol growth and commitment to transparency, and criticized Ogle’s credibility and motives, tweeting that Ogle is completely anonymous and was recently accused of insider trading on the Trump memecoin. Lambur expressed hope that Ogle would think twice before accusing other good teams in the future.

The allegations against the Across Protocol team highlight the challenges faced by decentralized finance (DeFi) projects in maintaining transparency and accountability. The $23 million in question is a substantial sum, and the accusations have the potential to erode trust in the protocol and the broader DeFi ecosystem. The co-founder's response is crucial in addressing these concerns and providing reassurance to the community. The incident underscores the importance of robust governance and transparency in DeFi projects. As the ecosystem continues to grow, it is essential for projects to implement strong internal controls and communicate openly with their stakeholders. The Across Protocol team's handling of this situation will be closely watched by the industry, as it could set a precedent for how similar issues are addressed in the future. The co-founder's response to the allegations is a critical step in restoring confidence in the Across Protocol. By addressing the concerns head-on and providing a clear explanation of the team's actions, the co-founder aims to reassure stakeholders and demonstrate the protocol's commitment to transparency and accountability. The outcome of this situation will have implications for the broader DeFi ecosystem, as it highlights the need for strong governance and open communication in decentralized finance projects.