Details of the alleged hack were being discussed in real time as members of the Decentralized Autonomous Organization (DAO) mulled over US law enforcement.
The so-called Saga DAO lost a significant portion of its funds. Approximately $60,000 in Solana (SOL) was lost due to a “remote hack” suffered by one of the DAO founders known by the pseudonym zkRedDevil.
They claim that hackers attacked home PCs and leaked assets and personal funds belonging to the Solana Mobile fan club. As a result of this incident, 700 SOL of Saga DAO’s funds and a separate 50 SOL were transferred from a wallet with multi-signature security measures in place.
The funds were then transferred to another address, which many believe is controlled by zkRedDevil.
Ashen, another Saga DAO founding member, opposed zkRedDevil’s story and accused them of stealing funds from the group’s Discord server.
“That mf zk sent me pictures of his kids! I thought that was enough to trust him, but I guess not… Although there may have been hacking on his side, it seems unlikely. It’s not like that. I don’t believe it (I also deleted his previous announcement)”
Ashen, Discord Moderator for Saga DAO
zkRedDevil claimed they were innocent and transferred ownership of Saga DAO’s Discord to others on the 12-member committee that helped found the group.
DAO participants were also discussing new leadership at press time, as the organization retains 30% of its finances. Also on the agenda was punitive action against zkRedDevil and other individuals found to be involved in the theft. Many members suggested involving the FBI or other law enforcement agencies.
This incident highlights the risks of participating in DAOs run by anonymous individuals. This issue exists across the cryptocurrency ecosystem, with many users experiencing rug-pulls that make it difficult to track down the culprits due to their unknown identity.
Lawmakers like Senator Elizabeth Warren have been calling for safeguards for these DAOs and DeFi protocols.
But blockchain advocates and stakeholders have opposed accusing the technology of criminal activity before Congress and courts. Instead, there is agitation for rules and laws containing provisions for compensation where necessary.
According to Wyoming Senator Cynthia Lummis, the problem is not cryptocurrencies, but bad actors.