Across protocol accused of secret vote manipulation stealing $23 million

By Umair Joiya - Crypto Writer
Disclaimer: Cryptocurrencies are a high-risk asset class. This article does not constitute investment advice and is provided for informational purposes only. You could lose all of your capital.
Across Protocol
Cover illustration/art via BTCRead. Image combines content, which may include AI-generated ideas.

Glue founder Ogle raised serious concerns about the Across Protocol team’s ruling practices. Ogle accuses the team of violating rules in private when utilizing hidden wallets to vote on Across DAO matters.

The illegal act saw a purported $23 million siphoned from Across DAO’s treasury wallet into Risk Labs, a company controlled by the same Across Protocol team. Across Protocol, a blockchain bridge powered with a DAO (Decentralized Autonomous Organization) model, appears community-driven.

The owners of $ACX tokens believe they chart the fate of the protocol’s future through democratic voting. But closer inspection discloses that what appears is a controlled governance by a group of insiders advocating proposals with personal benefits.

In October 2023, Kevin Chan, project lead and Treasurer of Risk Labs, submitted a public proposal requesting 100 million $ACX tokens. Valued at around $15 million then, the grant was meant to support Risk Labs, the for-profit company linked to Across Founders.

The proposal promised that tokens would not be sold for two years. However, it did not include formal agreements to guarantee the funds would benefit Across itself.

Across Protocol, insiders manipulated votes with wallets

Voting records reveal that Chan and several associates cast votes through multiple secret wallets to ensure the proposal passed. One wallet, “max odds.eth,” linked to Chan and family members alone accounted for a large share of affirmative votes.

Other team members, including co-founder Hart Lambur and Reinis FRP, similarly used hidden addresses to sway the outcome. Less than a year later, the team requested an additional 50 million $ACX tokens, worth $7.5 million, claiming retroactive funding.

Again, votes of wallets held by insiders were instrumental in reaching a quorum and voting through the grant. The group even admitted having sold token options granted under the original grant to investors, violating their previously promised two-year lockup agreement.

This situation is quite a significant conflict of interest. These decisions adversely affect current and prospective $ACX holders by exhausting the treasury and pressuring sales of tokens.

Experts advise that DAO decision-making should never become opaque or secretive. Resorting to insider self-dealing damages community trust and harms legitimacy.

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Crypto Writer
Umair Joiya is a dedicated crypto writer with one year of experience in the dynamic world of digital assets. Passionate about blockchain technology and market trends, he specializes in crafting clear, engaging content that breaks down complex topics for readers of all levels.
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