Across Protocol Faces $23M Misappropriation Allegations as ACX Token Sinks

The native token of Across Protocol, ACX, has dropped sharply amid serious allegations of insider misappropriation involving $23 million in DAO-controlled funds. The token is down 10% in the past 24 hours and over 40% in the past month, now trading at $0.1351— more than 91% below its December 2024 all-time high of $1.69.

Allegations of Insider Dealings

The accusations were made public on June 27 by “Ogle,” the pseudonymous founder of Layer 1 project Glue and advisor to World Liberty Financial. In a detailed thread on X, Ogle claimed that Across Protocol’s leadership, including project lead Kevin Chan and CEO Hart Lambur, orchestrated two governance proposals to transfer 150 million ACX tokens to their own company, Risk Labs.

The proposals allegedly passed under the appearance of community support, using undisclosed insider-controlled wallets to secure quorum and approval.

• The first proposal, passed in October 2023, granted 100 million ACX for “future development,” with a claim that tokens would not be sold for two years.
• Despite that, Risk Labs is accused of selling token option agreements to external investors soon after the vote.
• The second proposal, for “retroactive funding,” transferred an additional 50 million ACX. Ogle claims it only passed because of insider wallet participation.

Critics argue these actions breach DAO governance standards and have introduced major sell pressure to the token, catching retail investors off guard.

Co-Founder Of Across Responds

As of publication, Across Protocol has not issued a public statement addressing the allegations but the co-founder wrote an article on X refuting the claims made by Ogle.

TLDR Summary of the X article :

The author strongly refutes a recent post by an anonymous figure named Ogle, which made several serious allegations against them, their team, and the Across Protocol. They suggest the post may be a coordinated smear effort, possibly tied to rivals at LayerZero/Stargate, noting the immediate retweet by Stargate’s founder.

Key Accusations & Responses:

1. $23M Treasury Extraction
   • Claim: The Across team funneled $23M in ACX tokens from the DAO to their own company.
   • Response: False—tokens were granted to Risk Labs, a non-profit Cayman foundation with fiduciary responsibilities, to fund Across development. The funds were used for protocol growth and team expansion.
2. Insider Governance Manipulation
   • Claim: Team members secretly pushed proposals through using hidden wallets.
   • Response: False—wallets used were public (e.g., maxodds.eth is linked to team member Kevin Chan). Team members bought their tokens and voted transparently. The proposals passed with zero opposition and had public community discussions.
3. Violation of Token Sale Restrictions
   • Claim: Despite a 2-year lockup promise, tokens were sold early.
   • Response: False—no granted tokens have been sold. Risk Labs sold other tokens and still holds more than the original grant, verifiable on-chain.
4. Lack of Transparency
   • Claim: Insiders didn’t disclose conflicts of interest when voting.
   • Response: False—team members like Kevin Chan are doxxed and publicly supported the proposals. Going forward, they plan to include clearer disclosures in proposals.

On Ogle’s Suggestions:

• The author agrees proposal authors should disclose if they vote and with which address.
• They reject the idea that all team members must dox their wallets, calling it unrealistic and against crypto’s ethos.

Final Thoughts:
The author defends their team as honest, hardworking builders and denounces Ogle’s accusations as false and damaging. They express frustration over being attacked by an anonymous figure and challenge Ogle’s credibility.