Wonderland’s treasury saga exposes the fragility of DAO projects today

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The Wonderland Protocol has become the talk of the town in a world of decentralized finance (DeFi) after the platform was at the center of controversy.

On January 27, DeFi analyst zachxbt revealed that the anonymous co-founder of Wonderland is Michael Patrin, co-founder of QuadrigaCX, who worked under the name Sifu.

QuadrigaCX is an expired Canadian cryptocurrency exchange that closed after the death of Gerald Cotten, the exchange’s founder and the only person who knew the exchange’s wallet keys. After his death, $ 169 million in user money was irreparably lost.

Cotten’s death triggered a wave of lawsuits when former users of the stock exchange demanded the money back. Other members of the crypto community claim that Cotten forged his own death to escape the allegedly stolen cryptocurrency.

Who is Sifu?
Zachxbt claimed in a series of tweets that Patrin was a serial criminal by law, and before working for QuadrigaCX, he helped run an identity theft ring called Shadowcrew, which he later pleaded guilty to.

According to Bloomberg, which cites California court records, Michael Patrin is Omar Dhanani, who was sentenced to 18 months in prison for credit card fraud and pleaded guilty to burglary, aggravated theft and computer fraud on three separate charges. criminal cases.

A DeFi analyst has questioned Wonderland founder Daniel Sistagali’s motives for working with and holding a convicted multi-billion dollar treasurer responsible for holding investors’ money.

After revealing the true identity of the anonymous CFO, Sestagalli takes his side of the story. He claimed to have known about Sifu’s true identity about a month ago, but did not judge him because of his past. But Sestagalli’s clarification seems too late, and after a setback from the community, Wonderland decided to put Shifu’s removal to a community vote, which was overwhelmingly accepted.

Vote to remove Sifu Wonderland Source: Snapshot
Following the dismissal of the CFO, Sestagalli decided to leave the treasury to society and end the project. The proposal received divided votes: 55% against and 45% in favor. Despite this, the entrepreneur decided to close the project until a better solution was found.

Vote on proposal to close Wonderland Source: Snapshot
Immediately after the dismissal from Wonderland, Sifu sent 3000 Ether (ETH) to a coin mixer called Tornado Cash in three different batches. Although he claimed it was his own money, members of the community were skeptical. One user noted that the wallet associated with Sifu received around $ 400 million in funds in just one month, and immediately after it was terminated, $ 200 million was withdrawn from the wallet.

Sestagalli believes the community is strong and the project can move forward. In his latest tweet about this issue, he said:

“I work closely with Wonderland and WAGMI community moderators and supporters to ensure the best level of communication and information from top to bottom. We will continue to build together as a community and exit R & D together. The next offer will come soon;)”

Source: CoinTelegraph

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