Aragon Allegedly Deceived By Investors Over The Last 6 Years

Key Points:

• Allegations regarding Aragon’s misuse of the funds raised “silent” over the past 6 years are increasing.
• Previously, it was reported that the Aragon Association canceled the voting rights of ANT token holders in response to the “51% attack” launched by investors such as Arca.

Aragon, an open-source framework for launching decentralized autonomous organizations (DAOs), and its investors clashed last week when Aragon removed at least half a dozen Discord members, arguing they were rabble-rousers rather than genuine community members. And it seems that the performances are becoming more heated.

Mindao, the founder of dForce, said that Aragon raised 275,000 ETH in ICO in 2017, in which he also took part. This is a DAO with surplus cash, and the team has now hijacked the protocol treasury by “repurposing” the DAO and imposing a “fiduciary duty” on token holders after 6 years of inaction.

In an open letter, cryptocurrency investment firm Arca previously called on the DAO builder to execute ANT token buybacks, lending institutional weight to the activist investor controversy presently besieging the crypto governance company. Alex Woodard stated in the letter:

“We are planning to work with other tokenholders to propose that Aragon continue the buybacks to return ANT to book value.”

In his letter, Woodard disputed that portrayal, claiming that the inquiries he had been asking for months wanted clarity, not problems, regarding issues such as finances.

Aragon’s move to repurpose its DAO comes only a little more than a month after the firm announced a new engagement with the prominent Ethereum scaling group Polygon Labs.

The Aragon Association, a Swiss-based entity that controls its administration, said that it fulfilled its fiduciary obligation to preserve its treasury and purpose by repurposing the DAO as part of a new awards program.

The decision was taken after the newly created DAO was subjected to a 51% attack by a group known as the Risk-Free Value (RFV) Raiders, who were looking to exploit the usage of ANT for financial benefit.

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Harold

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