Details of the supposed hack were being discussed in real time as members of the decentralized autonomous organization (DAO) mulled involving U.S. law enforcement.
The so-called Saga DAO lost a chunk of its treasury. Around $60,000 in Solana (SOL) was lost following a “remote hack” suffered by one of the DAO’s founders, known by the pseudonym zkRedDevil.
They claim hackers attacked their home PC and drained assets belonging to the Solana mobile fan club and personal funds. Due to this incident, 700 SOL of the Saga DAO’s money and a separate 50 SOL were transferred from a wallet with multi-signing security measures.
The funds were then sent to another address that many believe is controlled by zkRedDevil.
Another Saga DAO founding member Ashen opposed the story from zkRedDevil and accused them of stealing funds on the group’s Discord server.
“That mf zk sent me pics of his kids! I thought that’d be enough to trust him but I guess not… Even though there could’ve been a hack on his side, it just seems unlikely so no, I don’t believe that (also deleted his previous announcement)”
Ashen, Saga DAO’s Discord moderator
zkRedDevil insisted they were innocent and transferred ownership of Saga DAO’s Discord to another person of the 12-member council credited for founding the group.
Participants in the DAO were also discussing new leadership at press time, as the organization retained 30% of its treasury. Also on the agenda were punitive measures against zkRedDevil and any other individual found to be involved in the theft. Many members proposed involving the FBI or other law enforcement agencies.
The incident underscores the pitfalls of engaging in DAOs run by pseudonymous personalities. This issue is also present throughout the cryptocurrency ecosystem, and many users have experienced rug pulls, finding it hard to track down culprits since their identity may be unknown.
Lawmakers like Senator Elizabeth Warren have pressed for guardrails around these DAOs and defi protocols.
However, blockchain proponents and stakeholders have argued in front of Congress and courthouses against blaming technology for criminal activity. There is instead, an agitation for rules and laws with provisions for recompense where needed.
According to Wyoming Senator Cynthia Lummis, bad actors are the problem, not cryptocurrency.