DAO Maker, a cryptocurrency fundraising platform, is facing renewed scrutiny over its handling of a 2021 hack that left investors millions out of pocket. Despite initial assurances of compensation, victims say they’ve been left empty-handed, raising questions about the platform’s accountability and transparency.
The hack, which occurred in August 2021, targeted DAO Maker Ventures, the platform’s venture capital arm. Hackers exploited a vulnerability to steal around $7 million worth of cryptocurrency from investors. In the aftermath, DAO Maker pledged to make affected users whole again. This pledge included an immediate airdrop of $500 worth of USD Coin (USDC) per victim, with the remaining compensation to be distributed through a token called USDR. USDR was designed to be redeemable for DAO Maker’s native token, DAO, within a year.
However, according to victims, USDR redemption was never enabled, leaving them with only a fraction of their initial investment. They allege that DAO Maker reneged on its complete reimbursement promise. Further fueling their frustration, a decentralized finance (DeFi) researcher named SOMA Analytics claims DAO Maker used its influence to manipulate a vote with its governing body to scrap the compensation plan altogether. The proposal to cancel reimbursement, SOMA Analytics alleges, was passed due to DAO Maker’s control over a significant portion of the voting tokens. Additionally, the researcher claims that the proposal was deleted after the vote, potentially in an attempt to conceal evidence.
DAO Maker has yet to publicly address these allegations. The lack of communication and apparent about-face on compensation has left victims feeling deceived. Many have taken to online forums to express their disappointment and frustration with DAO Maker’s handling of the situation. The incident has also cast a shadow over DAO Maker’s reputation, raising concerns about the platform’s security practices and commitment to user trust.
While DAO Maker attempts to move forward, fundraising for new Web3 projects, the unresolved issue of the 2021 hack continues to loom. The disgruntled victims and the unanswered questions surrounding the alleged cover-up threaten to overshadow any future endeavors undertaken by DAO Maker. The platform now faces the challenge of not only rebuilding trust with its userbase but also ensuring that a similar incident doesn’t occur again.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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