Protocol token drops 10% due to allegations of insider dealing

The ACX token, the foundational token of Across Protocol, has faced a significant decrease in value due to concerning allegations of insider self-dealing amounting to $23 million in decentralized autonomous organization (DAO) funds. Currently, the token is trading at $0.1342, experiencing a 10% decrease within the last 24 hours and a notable 40% decline over the past month. In comparison to its peak value of $1.69 in December 2024, the current price is a staggering 91% lower.

The accusations were initially made public on June 27 by Ogle, a pseudonymous founder of a Layer 1 project and an advisor to a financial institution. Ogle’s extensive post detailed the involvement of the Across Protocol team, particularly project lead Kevin Chan and CEO Hart Lambur, in orchestrating two covert proposals that directly favored their own company through undisclosed wallets. These proposals, falsely implying community approval, resulted in the transfer of 150 million ACX tokens worth $23 million to Risk Labs in two separate governance votes. The first vote in October 2023 allocated 100 million ACX for future development assistance, with assurances that the tokens would not be traded for two years. Nevertheless, Risk Labs apparently initiated the sale of token option agreements to external investors shortly after. The second vote, focused on “retroactive funding” of 50 million ACX, largely passed due to wallets controlled by insiders. Without these votes, the proposal would not have met quorum.

The report indicates that such practices contradict DAO governance standards and will lead to substantial future sell pressure, particularly affecting ACX holders unaware of the ulterior motives driving these decisions. Currently, Across Protocol has not issued any public statements regarding the allegations. A technical assessment of the token reveals evident downward trends. Presently, the token rests near the lower Bollinger Band at $0.1308 and trades beneath its 20-day simple moving average of $0.1597. The declining relative strength index, hovering near oversold regions at 31.27, suggests the potential for additional price drops if the $0.13 support level is breached. Despite some investors anticipating a rebound towards the mid-Bollinger band following the sell-off, any upward movement may be hindered by fading confidence and credibility in the team in the short term.