In a shocking revelation, the Across Protocol team stands accused of manipulating a governance vote to siphon off $23 million worth of ACX tokens. This scandal has sent ripples through the cryptocurrency community, raising serious questions about governance integrity in DeFi projects.
How Did Across Protocol Allegedly Misappropriate ACX Tokens?
According to Ogle, an advisor at World Liberty Financial (WLFI), the Across team transferred 150 million ACX tokens (worth $23 million) to their for-profit entity Risk Labs. This transfer was allegedly disguised as:
- “Strategic investment”
- “Retroactive funding”
The Governance Vote Manipulation Explained
The most serious allegation involves how the Across Protocol team supposedly ensured the proposal’s passage:
| Key Facts | Details |
|---|---|
| Vote Manipulation | Used insider addresses to achieve quorum |
| Without Insider Votes | Proposal would have failed due to lack of participation |
| Impact on ACX Holders | Creates potential selling pressure on the token |
Why This Risk Labs Transfer Matters
The movement of funds to Risk Labs raises several red flags:
- Lack of transparency in fund allocation
- Potential conflict of interest between protocol and for-profit entity
- Possible violation of decentralized governance principles
The Broader Implications for DeFi Governance
This incident highlights critical challenges in blockchain governance models:
- Vulnerability to insider manipulation
- Difficulty in achieving true decentralization
- Need for better safeguards against fund misappropriation
The Across Protocol scandal serves as a stark warning about the potential pitfalls in DeFi governance. As the situation develops, it underscores the importance of transparency and accountability in cryptocurrency projects. The community will be watching closely to see how Across Protocol responds to these serious allegations.
Frequently Asked Questions
What exactly is Across Protocol accused of doing?
The team is accused of manipulating a governance vote to transfer $23 million worth of ACX tokens to their for-profit entity Risk Labs.
How did they allegedly manipulate the vote?
By using insider-controlled addresses to achieve quorum when the proposal would have otherwise failed due to lack of participation.
What impact could this have on ACX token holders?
The transfer creates potential selling pressure on ACX tokens and may damage investor confidence in the project.
Has Across Protocol responded to these allegations?
As of this writing, no official response has been issued by the Across Protocol team.
What does this mean for DeFi governance?
This case highlights vulnerabilities in current governance models and the need for better safeguards against manipulation.
Where can I find updates on this situation?
Follow reputable cryptocurrency news sources and the official Across Protocol communication channels for updates.
