OlympusDAO’s co-founder was reportedly doxxed as one investor alleged that he was cheated out of millions of tokens when the key smart contracts became inoperable so let’s read more in today’s latest crypto news.
The lawsuit filed in the US District Court of Connecticut alleges that the OlympusDAO’s co-founder cheated an early investor out of 4 million OHM tokens that are worth about $20 million. This could also be the case of testing the limits of pseudonymity in the DAO space with the lawsuit of the Connecticut resident naming a person behind “Apollo” as one of the OlympusDAO’s co-founders.
The ETH-based proejct has been one of the most popular ones recently and most controversial with experiments to enter the world of DEFI in the past year. The project looked to establish its OHM token as digital reserve currency via a mix of memes and game theories but its price still dropped 95% over the past few months. The OHM token sits at $28 as per coinMarketCap and it is down from the $1300 peak in October. The complaint in the lawsuit filed recently shows that the investor Jason Liang agreed to promote the project and paid $50,000 in DAI in a private funding agreement in exchange for 4 million pOHM. According to the post, investors like Liang were later unable to mint 1 OHM in exchange for the 1 DAI and 1POHM.
Liang alleged that after he started selling some of the tokens, the Olympus team punished him by rendering inoperable the smart contracts and enabling him to redeem the pOHM to OHM. Liang noted that the teams’ ability to meddle with the key smart contract functionality undermined the claims that the proejct Is decentralized.
When OlympusDAo has launched a year ago, the project’s unique bonding and staking mechanics promised high returns to its investors in the real of a 10,000% annual percentage yield, and in order for the system to work, the OHM holders were encouraged to interact with the smart contracts as per a game theory principles. Liang’s lawsuit only suggests that there are many other reasons why the DAO creators could want to hide their identities and the filing came a few months after the creator of WonderlandDAO which was the OlympusDAO biggest spinoff unmasked as a convicted felon.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]