ACX Token Tumbles 10% Amid DAO Manipulation Allegations—Is Decentralized Governance Failing?

Another day, another crypto controversy—this time with a side of delicious irony. Across Protocol's ACX token nosedived 10% after whispers of DAO manipulation hit the market. Because nothing says 'decentralization' like coordinated wallet games.

When the 'D' in DAO stands for 'drama'

Sources report unusual voting patterns in recent governance proposals—the kind that makes you check Etherscan three times before believing it. The alleged manipulation centers around a suspicious cluster of wallets suddenly accumulating voting power. Classic 'whale' behavior, but with extra steps.

Market reacts with predictable panic

Traders dumped ACX faster than a Web3 founder abandons a project post-ICO. The 10% drop puts ACX at levels not seen since... well, last Tuesday. Because in crypto, volatility isn't a bug—it's the main feature.

Just another Tuesday in DeFi

While the team promises transparency (don't they always?), the incident raises uncomfortable questions. If DAOs can't prevent basic governance attacks, maybe we're further from the decentralized utopia than Moonboys want to admit. But hey—at least the blockchain never lies. Even when people do.

TLDR

• ACX token fell 10% to $0.1342 after allegations of DAO manipulation and insider trading surfaced on June 27
• Accusations claim team members used undisclosed wallets to approve $23 million in token transfers to their company Risk Labs
• Co-founder Hart Lambur denied all claims, stating tokens were granted properly for protocol development
• Token has dropped over 40% in the past month and sits 91% below its December 2024 all-time high of $1.69
• Technical indicators show ACX trading below key support levels with RSI approaching oversold territory

Across Protocol’s ACX token experienced a sharp decline on Friday after serious allegations emerged regarding governance manipulation and insider trading within the project’s decentralized autonomous organization.

The token dropped 10% to $0.1342 following accusations made by Ogle, the pseudonymous founder of LAYER 1 project Glue and advisor to World Liberty Financial. The allegations center on claims that core team members used undisclosed wallets to manipulate governance votes.

According to the accusations, project lead Kevin Chan and CEO Hart Lambur orchestrated two secretive proposals that benefited their company Risk Labs. These proposals allegedly transferred 150 million ACX tokens worth approximately $23 million at current prices through separate governance votes.

TLDR: Across Protocol/Bridge ($ACX) team used secret votes to extract ~$23m from the Across DAO’s treasury for their own private company's benefit.

Background: I’ve many times posted about DAOs that are DAOs “in name only” – that is, organizations that pretend to be run by “the…

— ogle | glue.net (@cryptogle) June 26, 2025

The first vote in October 2023 granted 100 million ACX tokens under the premise of future development support. The team claimed these tokens WOULD not be sold for two years.

However, Risk Labs allegedly began selling token option agreements to external investors shortly after receiving the tokens. A second vote for “retroactive funding” of 50 million ACX tokens passed primarily due to insider-controlled wallets.

Team Responds to Allegations

Co-founder Hart Lambur quickly responded to the accusations on social media, calling them “categorically untrue.” He denied all wrongdoing and explained the token grants were standard practice for DAOs.

“Risk Labs was granted ACX tokens from the DAO to build the Across protocol,” Lambur wrote in a Friday post. “This is standard practice for DAOs.”

Lambur detailed how the tokens were used since the first grant passed in October 2023. He stated the team shipped Across v3 and grew the protocol substantially during this period.

Since the second grant passed in October 2024, the team built Across v4 with new technology and hired team members using the tokens that vest over four years. Lambur emphasized the ACX tokens were being used exactly as intended.

Market Impact and Technical Analysis

The allegations have shaken trader confidence, with ACX seeing increased trading volume alongside the price drop. Market participants appear to be reacting swiftly to the news.

The token has experienced broader declines beyond Friday’s drop. ACX has fallen over 40% in the past month and now trades 91% below its all-time high of $1.69 set in December 2024.

Technical indicators paint a bearish picture for the token. ACX is currently trading NEAR the lower Bollinger Band at $0.1308 and below its 20-day simple moving average of $0.1597.

The relative strength index stands at 31.27 and is trending downward, approaching oversold territory. This suggests selling pressure may continue in the near term.

Analysts warn that more declines could occur if the price breaks through the $0.13 support zone. Some investors may watch for a potential bounce toward the mid-Bollinger band despite the current sell-off.

However, upward momentum appears limited in the short term due to deteriorating sentiment and eroded trust in the team. The controversy has created uncertainty around the project’s governance practices.

The allegations highlight ongoing concerns about transparency and decentralization in DAO governance structures. Whether substantiated or not, the accusations have created immediate market impact.

Trading volume spiked as news of the allegations spread across social media platforms. The swift market reaction demonstrates how quickly sentiment can shift in cryptocurrency markets.

ACX continues to face downward pressure as traders digest the implications of the governance controversy and await further developments from the Across Protocol team.