Crypto Under Fire: $2.1B in Losses, DAO Scandal, Ripple Ruling Holds
DAO governance manipulation, surging infrastructure attacks, and a judge’s refusal to reduce Ripple’s $125M penalty headline a volatile day in crypto.
Across Protocol Faces $23M Governance Misuse Accusations
Founders of Across Protocol, a cross-chain bridge platform, are being accused of manipulating DAO governance to funnel $23 million to Risk Labs, their affiliated for-profit entity.
The allegations came from Ogle, a pseudonymous blockchain investigator and founder of Glue, who claimed that Across Protocol operates under a “DAO in name only” model. According to Ogle, the DAO votes were steered to enrich Risk Labs under the guise of decentralized governance.
Hart Lambur, founder of both Risk Labs and Across Protocol, pushed back. Lambur shared documents confirming that Risk Labs is registered in the Cayman Islands as a nonprofit and emphasized his fiduciary duties, adding, “If the funds are misused, you can sue the directors (me!).”
Risk Labs’ certificate of company re-registration. Source: Across Bridge Protocol
Though the structure of foundation companies in the Cayman Islands allows for commercial aims, the controversy underscores ongoing concerns around transparency in crypto governance.
Crypto Attacks Surge: $2.1B Stolen in First Half of 2025
TRM Labs has reported that crypto-related hacks and exploits have already cost $2.1 billion in 2025, with over 80% stemming from infrastructure attacks such as seed phrase thefts and front-end protocol hacks.
This marks a 10% increase over 2022’s full-year record and is nearly equivalent to all losses in 2024 combined.
Flash loan and re-entrancy exploits accounted for 12% of losses, showing that smart contract vulnerabilities remain a major threat.
The $1.5 billion Bybit hack in February, attributed to North Korean cyber actors, accounted for nearly 70% of the losses.
Losses in the first half of 2025 have already surpassed all of 2024 combined. Source: TRM Labs
TRM Labs is calling for global cooperation among law enforcement, financial regulators, and blockchain intelligence firms to combat the rising threat.
Ripple, SEC Denied Bid to Reduce $125M Civil Penalty
In a major legal development, Judge Analisa Torres of the Southern District of New York rejected a joint motion from Ripple and the U.S. SEC to reduce a $125 million penalty and reverse a prior ruling that classified institutional XRP sales as securities transactions.
The request was made via an “indicative ruling”, a legal tool used to reconsider judgments during appeals. Judge Torres firmly denied it, stating:
“Ripple’s willingness to push the boundaries of the Order evinces a likelihood that it will eventually, if it has not already, cross the line.”
The final page of the ruling denying the petition. Source: PACER
Torres criticized the parties for attempting to sidestep proper appeals procedure, emphasizing that only the appellate court has the authority to amend the decision and reduce penalties under federal securities law.
Snapshot: Key Developments in Today’s Crypto News
Across Protocol under investigation for redirecting $23 million via manipulated DAO votes.
$2.1 billion stolen in 2025 so far; Bybit hack alone accounts for $1.5 billion.
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