W3BStation
Markets
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
06/27/2025

Across Protocol Scandal: Accused of Manipulating DAO Votes and Embezzling $23 Million

On June 27, the Web3 community erupted after Ogle — founder of the Glue project — published a series of explosive allegations targeting Across Protocol. According to the claims, the team behind the Across bridge project secretly manipulated vote outcomes within its DAO (decentralized autonomous organization) and embezzled over $23 million from community funds. The incident quickly ignited a wave of debate about transparency and insider-resistance in the DAO model, which has been touted as the "backbone" of organizations in the Web3 era.

Across Protocol Scandal: Accused of Manipulating DAO Votes and Embezzling $23 Million

On June 27, the Web3 community erupted after Ogle — founder of the Glue project — published a series of explosive allegations targeting Across Protocol. According to the claims, the team behind the Across bridge project secretly manipulated vote outcomes within its DAO (decentralized autonomous organization) and embezzled over $23 million from community funds.

The incident quickly ignited a wave of debate about transparency and insider-resistance in the DAO model, which has been touted as the "backbone" of organizations in the Web3 era.

What Is Across Protocol?

Across Protocol is a LayerZero infrastructure project that provides cross-chain bridge solutions, enabling fast, low-cost asset transfers between multiple blockchains. Built by the team behind UMA (Universal Market Access), the project previously raised $41 million in March 2025, led by Paradigm with participation from Multicoin, Coinbase Ventures, and Bain Capital Crypto.

However, since late 2024, the project's ACX token has been in a prolonged slide — falling from an all-time high of $1.80 down to just $0.14 — leaving many investors questioning the project's operational efficiency and governance.

The Scandal: From DAO to Personal Piggy Bank

In a thread on X, Ogle alleged that the Across team exploited a lack of transparency in the DAO's governance mechanism to "vote for themselves and fund themselves." Specifically:

  • In 2023, a proposal submitted by Kevin Chan (an Across team member) requested that the DAO transfer 100 million ACX (worth approximately $15 million at the time) to Risk Labs — a private company founded by the team itself.
  • Ogle pointed out that Kevin and his associates used multiple anonymous wallets — including one labeled "maxodds.eth" — to vote in favor, accounting for the majority of total votes cast and bypassing the broader community.
  • It didn't stop there. In May 2025, they again asked the DAO for a "retroactive grant" of an additional 50 million ACX (~$7.5 million), using the same voting playbook — with the majority of votes coming from wallets tied to the founding team.

Ogle argued: "In any governance model — corporate, nonprofit, or government — the act of self-approving your own budget is an ethical violation that must be taken seriously."

Community Split, Across Stays Silent

The allegations sent shockwaves through the crypto community. Some sided with Ogle, arguing that Across's DAO had been corrupted and had lost its decentralized character. Others were skeptical of Ogle's motives, suggesting this could be a PR stunt for Glue — another Web3 project looking to carve out its own niche.

Notably, as of the time of writing, the Across team has not issued any official response.

The Core Issue: DAOs Not Living Up to the Hype?

This is far from an isolated case. Projects like Jupiter, Compound, and Beanstalk have all previously seen "whales swallow minnows," where a handful of token-rich wallets manipulated votes to serve their own interests.

Some of the most common problems plaguing DAOs today include:

  • Concentrated power: Uneven token distribution means only a few individuals control voting rights.
  • Lack of transparency: Many projects don't publish voting data or spending details publicly, creating fertile ground for abuse.
  • Legal gray zones: Many DAO members don't realize they could face personal legal liability — especially in cases of mismanaged funds.

Opinion: Is It Time to Reform the DAO Model?

The Across situation once again underscores the urgent need to rethink the DAO model — moving beyond the "decentralization dream" to something that actually includes:

  • Mandatory, transparent auditing mechanisms
  • Zero-knowledge anonymous voting to prevent coercion
  • Genuine power distribution: curtailing whale wallet dominance and amplifying community voice
  • Clear definitions of legal accountability

Ogle concluded: "The biggest threat to crypto investors isn't hackers — it's the people inside the project."

Bottom Line
As Web3 matures, organizational models like DAOs must also confront their own internal weaknesses. The Across scandal is a warning that "decentralization" without proper checks and balances can very easily become centralization in disguise.