ACX token plunges 12% as Across Protocol faces DAO funds misappropriation claims

The native token of Across Protocol, ACX, is under intense pressure following explosive allegations of misappropriated DAO funds, which have sparked widespread community backlash and panic in the markets. On June 27, 2025, the token’s price tumbled by over 12% in a single day, trading at just $0.1342 — more than 91% below its all-time high set late last year. The fallout stems from newly surfaced claims of insider manipulation tied to $23 million in questionable token transfers that now threaten the credibility of the protocol’s governance structure. Notably, the allegations come about two months after Across Protocol partnered with Velora to facilitate cross-chain swaps across 17 different blockchain networks, a move hailed at the time as a step toward broader adoption. Whistleblower accuses team of insider manipulation The allegations were made public by Ogle, the pseudonymous founder of Layer 1 project Glue and a known figure in the DeFi space. In a detailed post on X , Ogle accused the Across Protocol leadership — specifically CEO Hart Lambur and project lead Kevin Chan — of orchestrating two secretive governance proposals that redirected community funds to their own for-profit entity, Risk Labs. According to Ogle, these proposals were disguised as standard community-backed votes but were in fact propped up by insider-controlled wallets to ensure quorum and passage. The first vote, executed in October 2023, transferred 100 million ACX to Risk Labs under the promise of future development funding, with assurances the tokens would remain unsold for two years. However, not long after, Risk Labs reportedly began selling token option agreements to outside investors, raising suspicions that the vote’s true intent had been concealed. A second vote soon followed, granting an additional 50 million ACX as so-called “retroactive funding,” again passing due to wallets allegedly linked to the core team. The market reacted with heavy sell-offs amid rising volume As the accusations circulated, traders reacted swiftly, driving ACX’s price down over 12% in 24 hours and deepening its monthly decline to more than 41%. Across Protocol token price chart| Source: CoinGecko Market activity surged, with 24-hour trading volume jumping by 75% to nearly $26.7 million, a sign that holders are rushing to exit their positions amid growing uncertainty. Despite the sell-off, Across Protocol’s total value locked (TVL) remains relatively strong at over $86 million, suggesting some users have not yet withdrawn liquidity from the ecosystem. Still, technical indicators point to ongoing bearish sentiment, with the token currently hugging its lower Bollinger Band at $0.1308 and trading well below its 20-day moving average. Moreover, the Relative Strength Index (RSI) has dropped to 31.27, indicating that the token is nearing oversold territory and could see further declines if sentiment fails to recover. DAO integrity and investor trust in the balance The core of the crisis lies in concerns about DAO governance integrity, a foundational principle of decentralised finance that promises transparent and community-driven decision-making. If the allegations prove accurate, Across Protocol may be seen as an example of how concentrated power and undisclosed interests can override the very mechanisms meant to protect token holders. Although the Across team has yet to issue a formal statement in response to the accusations, many in the community are demanding a full audit of the governance votes and associated wallet addresses. Without a credible rebuttal or corrective action, the ACX token may continue to face downward pressure as investor confidence erodes further. For now, the market remains on edge, waiting to see whether Across Protocol can restore trust or become the latest cautionary tale in DeFi governance gone wrong. The post ACX token plunges 12% as Across Protocol faces DAO funds misappropriation claims appeared first on Invezz

Source: Invezz