Founders of Cross-Chain Bridge Protocol Accused of Misappropriating DAO Funds for For-Profit Company
Date: June 27, 2025
The founders of the Cross Protocol, a prominent cross-chain bridge project, face accusations of misusing funds raised through a DAO (Decentralized Autonomous Organization) vote to support their for-profit entity, Risk Labs. The alleged incident has sparked significant debate within the Web3 community regarding DAO transparency and governance.
Fraudulent Use of DAO Funds
In an X post on Friday, pseudonymous crypto investigator Ogle, also the founder behind the Glue project, detailed that Across Protocol’s governance tokens were manipulated in two DAO proposals between 2023 and 2024.
Ogle alleged that insiders, specifically those associated with Risk Labs, orchestrated these proposals to covertly withdraw an estimated $23 million (valued at the time of the proposals) from the protocol’s treasury. He characterized Across Protocol as a “DAO in name only,” suggesting a lack of substantive decentralization or adherence to traditional DAO principles.
The first $13.1 million proposal reportedly passed with overwhelming support (over 97%) before a second proposal was submitted a year later. According to Ogle, the second proposal requested $50 million worth of ACX tokens (Across Protocol’s governance token) for what was described as “retroactive funding,” though formal agreements were allegedly missing. Ogle claimed that critical voting power behind both proposals originated from addressees believed to be funded and controlled by Hart Lambur, a co-founder of both Across Protocol and Risk Labs.
Company Registration and Founders’ Denials
Hart Lambur and co-founder Ivan Chan, who also founded Across Protocol, swiftly denied the allegations. In an X thread, Lambur provided documentation, including the company’s certificate of incorporation, from the Cayman Islands.
Lambur stated that Risk Labs is a Cayman Islands-registered foundation company, presenting itself as a nonprofit with no shareholders, operated under fiduciary trust. “If the funds are misused, you can sue the directors (me!),” Lambur asserted.
“It seems the Across/Risk co-founders and insiders orchestrated governance proposals that let them secretly subvert the ‘democratic’ process of the DAO, and extract ~$23m.”
– Bryan Ogle
“My team is free to buy tokens and privately vote in proposals, just like every other DAO out there. My team members have legitimately acquired their tokens… The proposal did not guarantee the money would be used for Across, there were no formal agreements between the two companies.”
– Hart Lambur
Challenging Nonprofit Status
Despite Lambur’s assertions, the legal nature of Risk Labs remains disputed. While Cayman Islands foundation companies are legally distinct from traditional “for-profit” entities and are often seen as “ownerless” or having special status, de jure vs. de facto operations can sometimes blur. The declaration within the certificate identifies Risk Labs solely under its corporate name.
Lambur confirmed that funds have remained in use for Across Protocol’s development. However, the findings reportedly expose potential voting centering issues within the DAO governed protocol.
Allegations of Anonymity and Conflict of Interest
Lambur further criticized the methodology used by Ogle, questioning his credibility and citing potential biases, including Ogle’s ties to competing LayerZero and Stargate projects.
“Funny enough, Bryan Pellegrino, the founder of Stargate and LayerZero, retweeted Ogle’s post almost immediately after he posted it,” Lambur wrote, hinting at a calculated promotional effect.
This incident highlights tensions in the Web3 space concerning the transparency and ethical boundaries of ventures controlled by teams involved in both DAOs and their associated for-profit entities. Cointelegraph attempted to reach Ogle for comment but did not receive a response.
