The sibling of WikiLeaks founder Julian Assange has pushed back against blockchain security firms SlowMist and RescuETH on June 17, asserting that their report in April suggesting that AssangeDAO might be conducting a “soft rug” exit scam is completely untrue. The two security firms had raised concerns about the decentralized autonomous organization’s transactions, labeling them as “suspicious” and raising fears within the community about a potential gradual exit scam.
Gabriel Shipton, Assange’s brother, communicated via Telegram that “SlowMist’s claims are completely false – they have mistaken AssangeDAO for the Wau Holland Foundation.” According to Shipton, AssangeDAO no longer possesses the 16,593 Ether (ETH) (equivalent to about $53 million) it had raised in 2022, as all of it was utilized to purchase a “Clock” non-fungible token (NFT) created by the artist Pak as part of the “Censored” collection.
The proceeds from the NFT sale were donated to the German charity organization Wau Holland Foundation, and the funds are no longer under the control of AssangeDAO. Shipton explained that “all the proceeds from the sale were contributed to the Wau Holland Foundation Moral Courage Project: Julian Assange – with the specific purpose of supporting the freedom and defense of Julian Assange.”
Furthermore, Shipton affirmed that the German charity is utilizing the funds for their intended purpose and adhering to all local regulations. Assange, who is presently imprisoned in a London jail, faces espionage charges from the United States due to his alleged involvement in publishing classified documents on WikiLeaks. He is fighting against extradition and has a hearing scheduled for July 9. Supporters, including the organizers of AssangeDAO, argue that his actions constitute protected free speech and do not amount to criminal behavior.
Blockchain data confirms that AssangeDAO acquired the Clock NFT on Feb. 9, 2022, for 16,593 ETH. The proceeds were then sent to the Censored: Clock deployer address starting with 0x5DA and are no longer held by the AssangeDAO multisig.
Cointelegraph reached out to SlowMist for comment but had not received a response at the time of publication. SlowMist is a blockchain security firm known for providing Anti-Money Laundering (AML) compliance and wallet security software, assisting exchanges and protocols in tracking down stolen and laundered funds.
AssangeDAO, established in early 2022 to pool investors’ funds for the purchase of Clock NFT, was inspired by the earlier ConstitutionDAO’s attempt to raise funds to buy an original copy of the U.S. Constitution. In February 2022, AssangeDAO raised over $53 million, making it the most well-funded DAO in history.
Despite the reassurances from Shipton, some members of AssangeDAO remain dissatisfied with the team’s actions. One JUSTICE tokenholder criticized the DAO for lacking a proper token-based voting system and claimed that the entire $55 million was spent on the NFT without the approval of the crypto community, violating the decentralized principles of a DAO.
While DAOs were created to facilitate coordinated actions among investors across the internet, disagreements and controversies among members are not uncommon. In the past, DAOs like HectorDAO and MangoDAO have faced internal disputes and accusations of misconduct.