ACX token dropped over 40% this month after insider dealing claims linked to secret token transfers.
The Across Protocol team allegedly used hidden wallets to pass proposals worth 23 million in ACX token value.
Report warns insider votes may trigger heavy sell pressure that could hurt unaware ACX token holders.
The native token of Across Protocol, ACX, has plunged after serious accusations of insider self-dealing surfaced online. ACX is now trading at $0.1342 after falling 12% in the last 24 hours. It has dropped over 40% in the past month. The token remains 91% below its peak of $1.69, reached in December 2024.
Allegations of Misuse of Governance
The controversy erupted on June 27 after Ogle, a pseudonymous founder of Layer 1 project Glue, shared findings on social media. Ogle also advises World Liberty Financial, which completed token sales recently. Ogle accused Across Protocol’s leadership of secretly approving proposals that benefited their own company.
https://twitter.com/WuBlockchain/status/1938430590262644829
The two proposals transferred 150 million ACX tokens, worth about $23 million, to Risk Labs. Both transfers passed through community governance votes. However, the votes appeared manipulated using wallets controlled by insiders.
Timeline of Token Transfers
The first vote occurred in October 2023. It approved the transfer of 100 million ACX tokens. The team justified this as future development support. They also claimed the tokens would remain unsold for two years.
However, Risk Labs allegedly began selling token option agreements soon after receiving the tokens. This move raised concerns about the authenticity of their commitment.
The second proposal passed months later and granted 50 million ACX tokens as retroactive funding. This vote narrowly reached quorum due to insider-controlled wallets, raising further doubts about transparency.
DAO Principles Under Scrutiny
These transactions, according to the report, conflict with core principles of decentralized governance. DAO structures rely on transparent, community-led decisions. Undisclosed insider influence undermines that process.
The report emphasized the risk of future sell pressure. It warned that unsuspecting ACX holders could suffer losses if token values continue to decline due to insider activity.
Observers believe that these internal transactions could damage investor trust. Such revelations may also affect the broader perception of DAO-based projects.
Market Response and Project Silence
The market responded quickly to the news. ACX’s sharp decline signals reduced investor confidence. Many token holders appear concerned by the apparent lack of accountability.
As of now, Across Protocol, which was ranked among the top DeFI protocols in may, has not issued a public statement regarding the allegations. Risk Labs and the individuals named have also remained silent. The situation continues to develop. The crypto community now watches closely for any formal responses or governance changes from the project’s leadership.
