The price of ACX, the native token of cross-chain bridge Across Protocol, nosedived over 10% early Friday following bombshell accusations of DAO manipulation and insider trading allegations involving its team.
Pseudonymous developer Ogle, founder of rival platform Glue, ignited the firestorm with claims that insiders secretly funneled $23 million in community funds while allegedly trading ahead of a Binance listing.
Hart Lambur, Across Protocol’s co-founder, vehemently denied the DAO manipulation and insider trading allegations, calling them “categorically untrue” in a heated public rebuttal.
The controversy has reignited debates about governance transparency in decentralized organizations.
Whistleblower claims $23 million DAO funds misused
In a detailed X thread, Ogle accused Across Protocol’s team of exploiting governance votes to approve treasury grants that ultimately benefited their private company, Risk Labs.
The whistleblower alleged that insiders. including CEO Lambur and Treasurer Kevin Chan used undisclosed wallets to pass proposals without revealing their financial stakes.
“These DAO manipulation and insider trading allegations aren’t just about one project,” Ogle wrote. “Many DAOs are decentralized in name only, with insiders pulling strings behind the scenes.”
Lambur fired back, asserting that Risk Labs is a nonprofit and all grants were used for protocol development.
“The idea that we ‘extracted’ value is insane,” he said, noting his $100,000 salary and lack of recent token grants.
ACX dips 10% as Across Protocol faces DAO manipulation and insider trading allegations
Insider trading accusations spark war of words
The drama escalated when LayerZero CEO Bryan Pellegrino retweeted Ogle’s claims and suggested Lambur had advance knowledge of ACX’s December 2024 Binance listing, a key pillar of the DAO manipulation and insider trading allegations.
“I found out about the listing on Twitter at 2 a.m., like everyone else,” Lambur countered. “Binance can confirm we paid zero listing fees and had zero heads-up.” He challenged Pellegrino to apologize, calling the accusations “disgusting and vile.”
Pellegrino pointed to Across’ past tweets about Binance communications as potential evidence, but Lambur insisted discussions had stalled months prior. “Insider trading would land me in jail. This is a smear campaign,” he said.
Community demands transparency amid fallout
The DAO manipulation and insider trading allegations have rattled investors, with ACX sinking to $0.134 before a partial recovery.
Critics argue the incident underscores systemic governance flaws, while Lambur pledged improved voting disclosures.
“Even if legal, opaque governance erodes trust,” said Ogle.
Meanwhile, Lambur warned that unfounded DAO manipulation and insider trading allegations could deter legitimate builders.
As the crypto world watches, the controversy raises a pressing question: How many DAOs truly prioritize decentralization over insider control?
Jeremiah Musa lives and breathes storytelling. For over 12 years, he's chased breaking news, crafted hard-hitting features, and built content strategies that cut through the noise. These days, you'll find him leading the charge at The Bit Gazette, where he oversees a team of writers digging into the biggest stories in crypto.
Based in Dubai's fast-moving fintech scene, Jeremiah has a knack for translating complex blockchain concepts into sharp, engaging content. He's just as comfortable breaking down a Bitcoin whitepaper as he is explaining market moves to newcomers. Before diving into crypto, he cut his teeth in traditional financial journalism, covering everything from emerging markets to regulatory shakeups.
What keeps him up at night? Finding the human angle in every tech story. When he's not editing copy or prepping PR campaigns, he's probably arguing about the future of Web3 over karak chai or hunting down Dubai's best shawarma.
