TLDR
ACX token dropped 10% after allegations of DAO manipulation and insider trading, which the Across Protocol team denied.
Across Protocol’s co-founder, Hart Lambur, refuted claims of insider trading, stating no prior knowledge of Binance listing.
Risk Labs, affiliated with Across Protocol, operates as a nonprofit foundation despite allegations of misusing funds.
Across Protocol’s team stressed full transparency in governance and voting, with all actions openly documented.
Across Protocol’s ACX token saw a drop of over 10% in value following allegations of improper behavior related to its DAO governance and insider trading. The allegations claim that the Across Protocol team misused DAO governance to direct funds for personal benefit, which the team has firmly denied. Co-founder Hart Lambur has stated that the accusations are false and that the token’s grants and votes were managed transparently.
Across Protocol Allegations of DAO Manipulation
The controversy began with Ogle, the pseudonymous founder of Glue, a crypto infrastructure platform, who posted claims on X. Ogle suggested that the Across Protocol team manipulated DAO governance to approve proposals that benefitted their private company, Risk Labs. He accused the team of using insider-controlled wallets to push proposals through, which allegedly transferred about $23 million worth of ACX tokens from the community treasury.
According to Ogle, these proposals had the appearance of community support, but were secretly influenced by team members’ wallets.
Lambur, in response to these allegations, denied any wrongdoing. He explained that the DAO governance process was transparent, with no hidden agendas or secretive voting activities. Lambur emphasized that the funds were used for the development of Across Protocol, including building Across v3 and v4. He also stressed that Risk Labs, the team’s affiliated company, operates as a nonprofit and does not engage in profit-driven activities. “If the funds are misused, you can sue the directors,” Lambur said.
Insider Trading Allegations and Binance Listing
Another claim came from Bryan Pellegrino, founder of LayerZero and Stargate, who alleged that Lambur may have engaged in insider trading before the surprise Binance listing of ACX tokens in December 2024. Pellegrino’s accusation was based on the timing of Lambur’s token purchases, which came shortly before the listing announcement.
Lambur responded forcefully to these accusations, stating that he had no prior knowledge of the Binance listing and was as surprised as the rest of the community when the news broke on Twitter.
He further clarified that he purchased the tokens openly using his public wallet to support the project. Lambur also asserted that he had not received any special information or early access to the listing, and that Binance could verify the timeline of events.
Risk Labs’ Nonprofit Status and Governance Process
Lambur also addressed concerns about Risk Labs’ nonprofit status. He provided documentation showing that Risk Labs is a Cayman Islands-based foundation, which is legally required to operate without shareholders. Despite this, some have questioned the foundation’s nonprofit status due to the nature of its activities, such as receiving funding for its work on Across Protocol.
Lambur clarified that while the foundation may have received significant funds from the DAO, these funds were used to build and improve the protocol.
He highlighted that the grant proposals were publicly available and had undergone the usual voting process. Lambur also noted that, contrary to claims made by Ogle, the wallets used for voting were not hidden, and their owners were clearly disclosed.
Team’s Transparency and Voting Integrity
One of the central issues in the allegations is the claim that team members secretly controlled votes using wallets linked to them. Lambur rejected these allegations, pointing out that all team members had voted with their personally acquired tokens. He also emphasized that all voting actions were transparent, with some votes even passing unanimously.
The team has pledged to improve transparency moving forward, although Lambur made it clear that it would not be reasonable to expect full disclosure of all personal wallet addresses. He stated that team members should be able to participate in governance just like any other community member, as long as they are doing so openly.
In conclusion, Across Protocol’s leadership has denied any manipulation or unethical conduct regarding its governance and token distribution. Lambur has expressed frustration with the ongoing criticism, especially from competitors, and has called for more respect for the team’s efforts in developing the protocol. The situation continues to unfold as both sides present their arguments.
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