The creators of the cross-chain bridge Across Protocol are accused of exploiting DAO governance to siphon $23M in tokens to their linked firm, Risk Labs.
According to pseudonymous analyst Ogle, insiders exploited concealed wallets to influence important DAO votes, gaining massive token transfers under the pretense of "strategic investment" and "retroactive funding." Ogle claims that these acts undermined the DAO's democratic process since one wallet backed by founder Hart Lambur accounted for roughly 14% of a pivotal vote.
The dispute centers on Risk Labs, which is registered as a Cayman Islands foundation company. Founder Hart Lambur maintains that Risk Labs is a nonprofit with fiduciary responsibility and no shareholders. However, independent verification of its nonprofit status is inconclusive.
Cayman Foundation corporations can serve both commercial and altruistic interests, further blurring the lines.
Lambur has categorically denied any wrongdoing, claiming that token distributions to Risk Labs were typical DAO protocol development practice and that team members are able to vote with tokens they obtained themselves. He further emphasized the transparency of voting addresses, dismissing the charges as completely false.
The dispute has caused a dramatic drop in the price of ACX tokens and reignited worries about transparency and governance in decentralized finance ventures.
