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Assange’s Brother Refutes AssangeDAO Rug Pull Allegations

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Assange’s Brother Refutes AssangeDAO Rug Pull Allegations

Julian Assange’s brother, Gabriel Shipton, responded on June 17 to allegations made by blockchain security firms SlowMist and RescuETH, who claimed that AssangeDAO might be involved in a “soft rugging” scheme. This assertion was based on an April report highlighting “suspicious” transactions, which had prompted fears of a gradual exit scam among the community. Shipton refuted these claims, emphasizing via Telegram that the firms had mistaken AssangeDAO for the Wau Holland Foundation.

Shipton clarified that AssangeDAO no longer possesses the 16,593 Ether (ETH) it gathered in 2022. The funds were entirely spent on a “Clock” non-fungible token (NFT) by the artist Pak, as part of the “Censored” collection. Pak had then directed the proceeds to the Wau Holland Foundation, meaning the funds were no longer under AssangeDAO’s control. Shipton reiterated that the proceeds were all donated to support the legal defense and freedom of Julian Assange.

He further stated that the Wau Holland Foundation uses the funds as intended, adhering to local regulations. The foundation is responsible for covering Julian Assange’s legal expenses and campaign costs, operating under German charity law to assist both Assange and WikiLeaks. Assange is presently imprisoned in London, awaiting a hearing set for July 9, as he fights against extradition to the United States, where he faces espionage charges.

Supporters of Assange, including the organizers of AssangeDAO, defend his actions as protected free speech rather than criminal activity. Blockchain records confirm that AssangeDAO bought the Clock NFT for 16,593 ETH on February 9, 2022. These funds were sent to an address starting with 0x5DA and are no longer held by AssangeDAO. Attempts by to get a comment from SlowMist were unsuccessful.

AssangeDAO was established in early 2022 with the goal of pooling investors’ resources to purchase the Clock NFT. This was inspired by ConstitutionDAO, another initiative aimed at raising funds to buy an original copy of the U.S. Constitution. AssangeDAO successfully raised over $53 million, making it one of the most well-funded DAOs in history. The collaboration between Assange and Pak included the release of a series of NFTs called “Censored,” meant to raise funds for Assange’s legal battle.

SlowMist and RescuETH issued a report on April 2, warning investors about potential risks associated with AssangeDAO. They claimed a dubious transfer of 100 ETH was made from the “Censored: Clock Multisig” address. This action triggered concerns of a “Soft Rug Pull” among community members. The report also linked this address to the Wau Holland Foundation, stating that funds originally raised by AssangeDAO were redirected there.

Using its MistTrack AML platform, SlowMist tracked these transactions and noted significant transfers to other wallet addresses. For instance, on April 8, 2022, 580.745 ETH was sent to a smart contract address, followed by other transfers in May. The funds were eventually pooled into two main accounts that frequently moved ETH to centralized exchanges, raising further questions about the final destination of the funds.

Blockchain data shows that the Censored: Clock deployer address is not the same as AssangeDAO’s multisig wallet. The Ethereum username AssangeDAO.eth resolves to a different account ending in eA00, which is separate from the address involved in the controversial transfers. Shipton maintained that the Censored: Clock deployer account is controlled by the Wau Holland Foundation. Multiple attempts to get a comment from the foundation went unanswered.

Despite Shipton’s assurances, some members of AssangeDAO remain dissatisfied with the management’s actions. A JUSTICE tokenholder expressed concerns over the lack of a proper token-based voting system within the DAO. They argued that extracting the entire $55 million without community approval undermined the principles of a decentralized autonomous organization, where consensus is key.

DAOs are designed to enable investors to coordinate actions across various locations and jurisdictions. This decentralized structure can sometimes lead to significant internal conflicts. For example, HectorDAO faced accusations of an “inside job” hack in January after losing $2.7 million, which led to a court-ordered takeover by an insolvency firm. Similarly, MangoDAO members accused insiders of executing a corporate raid in April.

33 thoughts on “Assange’s Brother Refutes AssangeDAO Rug Pull Allegations

  1. First ConstitutionDAO, now this! Are DAOs just destined for mismanagement and scandal?

  2. I’m starting to lose faith in DAOs. Every time there’s a big story, some shady stuff comes out. AssangeDAO, what are you hiding?

  3. Shiptons response is what true accountability looks like. Kudos for clearing up the confusion and for the transparency!

  4. Bravo, Gabriel Shipton! Clearing up these allegations with transparency strengthens our cause. Incredible job!

  5. The blockchain transparency is supposed to clear things up, not create more questions. Feeling more confused than ever. 🌀💰

  6. Shipton’s response shows real dedication to Julian Assange’s cause. Clear communication like this strengthens community trust. ❤️

  7. Grateful to Gabriel Shipton for setting the facts straight! Clear communication is so important in these times.

  8. Can’t believe AssangeDAO let that much ETH slip through their fingers. Feels like a soft rug pull to me.

  9. Really appreciate Gabriel Shipton’s dedication to clarity. Misunderstandings addressed with evidence and transparency. 🌟

  10. Incredible to see such proactive communication from Shipton. Misunderstandings cleared up swiftly! Proud of AssangeDAO for their cause. ✨

  11. Honestly, this whole situation reeks of mismanagement. How can you spend all that ETH without proper community approval? Not cool, AssangeDAO!

  12. 🌟 Kudos to Gabriel Shipton for setting the record straight on these transactions. Transparency and accountability at its finest.

  13. Shipton’s prompt and clear response reinforces our faith in AssangeDAO’s mission. We believe in truth and justice! ✊

  14. DAOs are supposed to be decentralized, but this whole ordeal proves otherwise. AssangeDAO has lost my trust.

  15. Amazing job by Gabriel Shipton addressing the confusion with clear information. This is how you build community trust!

  16. Absolutely love the transparency from Gabriel Shipton. Setting the record straight is essential, especially during these times.

  17. Justice for Julian Assange remains paramount. Grateful to Gabriel Shipton for his thorough explanation. The truth prevails!

  18. Gabriel Shiptons clarification is a breath of fresh air. Legitimate concerns addressed head-on! Keep up the great work, AssangeDAO.

  19. Trust restored! Gabriel Shipton has done a fantastic job of explaining the situation. Onward to justice for Assange.

  20. AssangeDAO’s actions don’t align with the ideals of a decentralized organization. Everything feels centralized! 🏢😒

  21. Wow! Such transparency from Gabriel Shipton! Addressing the concerns directly and with evidence shows true dedication. 🙌

  22. Phenomenal job by Gabriel Shipton in clearing the air! Keeping the supporters informed with facts is crucial. 🌍❤️

  23. Why weren’t there proper voting mechanisms in place? Extracting $55 million without consensus is unacceptable! 😠

  24. Gabriel Shipton’s clarifications are exactly what the community needed. Keeping transparency alive!

  25. Impressive commitment to transparency! Shipton has really laid out the facts nicely. We stand with AssangeDAO.

  26. If AssangeDAO cant even maintain proper accounting and reporting, how can we trust them? Pretty disappointed.

  27. So AssangeDAO funds are now with the Wau Holland Foundation? That doesn’t make this any less fishy.

  28. Great to see Gabriel Shipton taking swift action to clarify the misuse allegations. The funds’ allocation makes perfect sense!

  29. DAOs need to be more than just a money-raising gimmick. AssangeDAO dropped the ball big time.

  30. 🔥 Gabriel Shipton really came through with a clear and detailed response to those allegations! Great job clarifying the distinction between AssangeDAO and the Wau Holland Foundation. 👏

  31. Thanks to Gabriel Shipton for dispelling the misinformation. The dedication to Assange’s defense is evident.

  32. These kinds of reports damage the credibility of the whole crypto community. Come on, AssangeDAO, do better!

  33. Shiptons detailed response is a testament to AssangeDAOs transparency. Keeping the mission strong!

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