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WLFI Co-Founders Face Legal Action Over $2.5M Dough Finance Hack
WLFI Co-Founders Face Legal Action Over $2.5M Dough Finance Hack
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Former clients of World Liberty Financial’s founders are seeking recourse after a $2.5 million exploit against Dough Finance in July 2024 led to the protocol’s collapse. Despite governance tokenholders approving restitution with 99.5% support, affected investors remain uncompensated as the team shifted focus to launching WLFI.
Reuters reports the lawsuit highlights recurring security failures in decentralized finance, where protocol architects often relaunch projects without addressing prior liabilities. The case underscores growing regulatory scrutiny around founder accountability following protocol breaches.
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