The cryptocurrency space is no stranger to controversy, but recent allegations against the Across Protocol have sparked intense debate among investors, developers, and analysts. At the center of this storm is a claim made by Ogle, founder of Glue, who alleges that the team behind Across Protocol manipulated governance votes to redirect approximately $23 million from the project’s DAO treasury into a private company linked to the team—Risk Labs.
This article dives deep into the accusations, analyzes market reactions across affected tokens like $ACX**, **$ACT, and others, and explores what this means for trust, transparency, and decentralization in blockchain governance.
The Allegation: Did Across Protocol Manipulate Its Own DAO?
On July 1, 2025, Ogle, founder of cross-chain infrastructure project Glue, published a detailed critique accusing the Across Protocol team of orchestrating a covert maneuver to gain control over its decentralized autonomous organization (DAO). According to the post originally shared by GateUser-2cb5fa36, the core issue revolves around two major funding proposals submitted by Kevin Chan, a lead figure in the Across project.
Key Claims:
- In 2023, Kevin Chan proposed allocating **100 million $ACX tokens** (valued at ~$15 million) to Risk Labs.
- Later, an additional **50 million $ACX** (~$7.5 million) was requested under the label of “retroactive funding.”
- These proposals passed through DAO voting—however, Ogle claims that hidden wallets with traceable links to the core team were used to influence or outright manipulate the vote.
Such actions, if proven true, could undermine one of the foundational principles of decentralized finance: decentralized governance. When a small group can sway decisions meant to be community-driven, it raises serious questions about whether these systems are truly democratic or just centralized control in disguise.
"Transparency isn’t optional in DeFi—it's mandatory. If governance can be gamed by insiders, then every vote becomes suspect." – Crypto Governance Analyst
This incident highlights growing concerns about wallet anonymity, voting integrity, and token distribution fairness in DAOs. With more than $23 million allegedly redirected, stakeholders are demanding audits and clearer governance frameworks.
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Market Reaction: How Did Affected Tokens Perform?
When trust erodes in a crypto project, markets react swiftly. Let’s examine how key digital assets mentioned in the discussion fared following the revelations.
$ACX (Across Protocol Token)
- Price Change: -1.47%
- Despite being central to the controversy, $ACX saw relatively modest price movement. This could indicate either market skepticism about the claims or limited liquidity and awareness at this stage.
- However, long-term confidence may still be at risk without transparent clarification from the team.
$ACT (Another Ecosystem Token)
- Price Change: +0.09%
- Minimal positive movement suggests investors may not directly associate $ACT with the Across scandal—though both operate in cross-chain infrastructure.
- Still, proximity in sector increases reputational risk during broader ecosystem scrutiny.
Other Mentioned Tokens: MPLX, SYN, CLOUD
While not directly tied to the Across controversy, other tokens referenced in posts by GateUser-2cb5fa36 reflect broader investor sentiment toward struggling projects:
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MPLX
Described as “continuously declining,” MPLX has been under bearish pressure with a reported drop of 1.91%. Investors appear frustrated with lack of development updates or clear utility.
SYN
Once bullish sentiment emerged on March 16 ("bottomed out, strongly bullish"), opinions reversed sharply within days. By late March, posts called SYN a “garbage token” and claimed the team had abandoned it in favor of a new token called CX. A price decline of 4.6% followed amid fears of token migration and potential devaluation.
CLOUD
Labeled a “trash coin” due to persistent downtrends, CLOUD dropped a staggering 11.19%, reflecting strong sell-side pressure and low investor confidence.
These patterns reveal a common theme: when communication breaks down between teams and communities, panic spreads quickly—and prices pay the price.
Why Governance Transparency Matters in DeFi
Decentralized Finance (DeFi) promises open access, permissionless innovation, and community ownership. But cases like Across Protocol show how fragile that promise can be.
Red Flags in DAO Governance:
- Use of unverified or anonymous wallets in voting
- Concentrated token holdings enabling vote manipulation
- Lack of public audit trails for treasury movements
- Insufficient checks and balances on proposal approvals
To preserve trust, projects must adopt best practices such as:
- Quadratic voting to reduce whale dominance
- Time-locked treasury withdrawals
- On-chain disclosure of team-controlled addresses
- Third-party audits before major fund reallocations
Without such safeguards, even technically sound protocols risk losing user trust overnight.
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Frequently Asked Questions (FAQ)
Q: What is Across Protocol?
A: Across Protocol is a cross-chain messaging and bridging solution designed to enable seamless asset transfers between blockchains using optimistic validation mechanisms. It aims to improve speed and reduce costs compared to traditional bridges.
Q: What is a DAO, and why does it matter here?
A: A Decentralized Autonomous Organization (DAO) allows token holders to vote on key decisions, such as fund allocation or protocol upgrades. In this case, the integrity of the DAO’s voting process is under scrutiny due to alleged manipulation by insiders.
Q: Can hidden wallets really influence DAO votes?
A: Yes. If large amounts of governance tokens are held in undisclosed addresses controlled by developers or affiliated entities, those parties can disproportionately influence outcomes—undermining true decentralization.
Q: Is $ACX safe to hold right now?
A: Given the unresolved allegations and potential legal or reputational risks, investors should proceed with caution. Conduct thorough research and monitor official project communications for responses to the accusations.
Q: How can I protect myself from similar risks?
A: Always review a project’s token distribution, team transparency, audit history, and governance model before investing. Diversify holdings and avoid overexposure to any single DeFi protocol.
Final Thoughts: Trust Is the Real Currency
In crypto, code may be law—but trust is what keeps the system running. The allegations against Across Protocol serve as a wake-up call for both users and builders. As DeFi matures, governance must evolve beyond symbolic decentralization to deliver real accountability.
Whether these claims are validated or refuted, they underscore an urgent need for:
- Clearer standards in DAO operations
- Greater transparency in fund management
- Stronger tools for detecting vote manipulation
Only then can decentralized networks live up to their name.
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Core Keywords:
- Across Protocol
- DAO governance
- $ACX token
- crypto controversy
- blockchain transparency
- DeFi security
- vote manipulation
- Risk Labs
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