Across Protocol's $23M: Did the Community Get Betrayed?

It was supposed to be different. Another brick in the wall of this new world of decentralized finance, developed with trust, transparency, and community in mind. You place your trust, and perhaps your financial future as well, on it. You were excited about the idea of an adventurous new financial future that unshackled us all from the arbitrary rules dictated by central powers. Now, the air smells of something rotten. $23 million. Gone. Risk Labs is very literally the founders, which is where the confusion comes for so many. In fact, for many, they have a hard time visualizing where Across Protocol ends and Risk Labs begins. The question is not only where that money went, it’s did they take us for a ride?

Betrayal in the Decentralized Wild West?

Imagine building a house with your neighbors. Everyone contributes, everyone has a say. The chief, lumberyard owner, slips a brick-sized piece of timber, silently cutting a huge corral. He keeps shifting it to their second company. They claim it’s all for “research,” but no one can find any research being conducted. And that, in essence, is what lost really like to have happened with Across Protocol.

This isn't just about the money. It's about the principles of DeFi. It's about the promise of a level playing field, where everyone has a voice and no one can unilaterally decide to reroute funds to benefit themselves. Indeed, the heart of DeFi beats on trust, and when that trust is violated, the entire ecosystem is run through. When the people who are supposed to be building that better future for us start to look like the wolves we were trying to escape, who can we trust?

This raises one huge red flag, because this situation smells of the type of insider dealing that is rampant in traditional finance. The exact thing DeFi was supposed to eliminate.

Is Risk Labs Really A Non-Profit?

This makes the new Cayman Islands foundation company structure somewhat shady. A charitable non-profit that does not have to return anything raised to shareholders? That makes it sound more like a black box than a bastion of altruism. And the absence of any enforceable agreements dictating how the $23 million would be used? That’s not just a red flag—that’s a full-blown emergency flare.

Let's be real. The fact that Risk Labs is not listed on any official registries, or otherwise selected, is a red flag. If it really is a non-profit—as the founders have insisted that it is—then why is the answer to that question so hard to check out? The absence of transparency about how Risk Labs operates is an insult to the community.

A true non-profit welcomes scrutiny. It intentionally tries to walk the walk, showing its grantees that it is serious about its mission. Unlike some, it isn’t able to shelter behind matter obscuring legal architecture and offshore centers.

Insider Voting: A Rigged Game?

That onchain analysis showing evidence of possible insider voting is the most damning. Wallets associated with Hart Lambur and other Risk Labs team members may be influencing governance proposals? That's not decentralized decision-making; that's centralized control disguised as decentralization. It’s a shadow government that operates in plain sight.

If so, this is more than a failure of ethics. It’s a blatant attack on the DAO’s integrity. It’s an abandonment of the very same people who had faith in the long touted ideals of local control.

Imagine this scenario: A small group of individuals with privileged access to information and resources manipulate the voting process to enrich themselves at the expense of the community. You'd be FURIOUS.

Hart Lambur and his firm deny any wrongdoing, and as in all criminal cases, he is entitled to the presumption of innocence. The burden of proof is now on him and Risk Labs. Or, for challengers to be defeated, they need to prove that the governance process was inclusive, transparent, and without outside influence. His assertions must be supported with data.

This isn't just about Across Protocol. It's about the future of DAOs. If we allow insiders to bend governance to serve their own narrow self-interest, we put the entire decentralized movement at risk.

This is not the end. It’s a wake-up call. We, the community, must demand better. We must demand transparency. We must demand accountability. The future of DeFi depends on it. Don't let the dream die.

Demand a Thorough Investigation: We need a truly independent investigation into the alleged diversion of funds and the potential manipulation of the governance process.
Advocate for Governance Reforms: The Across Protocol governance structure needs to be overhauled to prevent future abuses. We need safeguards to protect community assets and ensure that all voices are heard.
Support Transparency Initiatives: We need to support initiatives that promote transparency and accountability in the DeFi space. This includes demanding full disclosure from DAOs regarding their financial operations and governance practices.
Hold Those Responsible Accountable: If wrongdoing is proven, those responsible must be held accountable for their actions. This includes potential legal action and reputational damage.