The extent to which Cross Protocol may have manipulated its governance is truly shocking. Nevertheless, Project lead Kevin Chan and CEO Hart Lambur have been accused of using hidden wallets to sway votes within the DAO. Through these votes, it’s claimed over 150 million ACX tokens were moved. This figure is worth approximately $22.5 million and has transitioned from the DAO treasury into Risk Labs. These accusations, filed by whistleblower Ogle, are existential—we’re talking major violations of transparency and a commitment to community-driven decision-making—against the DAO.
Allegations of Undisclosed Wallets
The heart of the dispute is the purported use of undisclosed wallets by Kevin Chan and Hart Lambur. These wallets were said to recreate the appearance of overwhelming grassroots support for governance proposals. They did it so well that they turned the tide on extremely important votes.
According to Ogle, these manipulated DAO votes resulted in the transfer of over $30 million worth of ACX tokens. In two consecutive proposals, these tokens were transferred from the DAO treasury to Risk Labs.
In their first proposal, they used $15 million to transfer 100 million ACX tokens. Then, the second proposal awarded another 50 million ACX tokens, worth $7.5 million, to the same operator.
Concerns Over Transparency
Ogle says that these actions fly in the face of the very principles DAO governance is built upon. DAO governance prioritizes transparency and community-driven decision-making.
Further, using undisclosed wallets to buy votes through bribes eats at the core of the entire process and erodes trust. It begs the question very seriously how much community voice was really reflected in those decisions.
Community members are becoming rightfully more alarmed. This concern was heightened after the transfer of $22.5 million of ACX tokens from the new DAO treasury to Risk Labs. They are asking for an explanation about why these transfers are being made and how this will affect the long-term sustainability of the protocol.
Impact on DAO Governance
In light of these allegations, Kevin Chan and Hart Lambur’s claims have produced a ripple effect through the Across Protocol community. In doing so, they have started an important conversation about the necessity of increased oversight and accountability in DAO governance.
If these allegations turn out to be true, the implications would be profound for the future of Across Protocol. It risks undermining confidence in the endeavor and possibly scaring away future engagement in the DAO.
