On-chain movements suggest the Ethereum tokens from the Shiba Inu DAO has been stolen by individuals with control of the original holding wallet.
These tokens, amounting to 37.5 ETH (now worth over $91,000), were the subject of an on-chain governance proposal within the Shiba Inu DAO over the past few days. For context, Welly, the Shiba Inu ecosystem’s fast-food partner, donated these funds to the SHIB DAO.
Etherscan data confirms the Welly address sent the funds to the holding wallet in July 2022. The assets had remained there until recently, when the Shiba Inu community voted to move them to a multi-sig address controlled by four individuals, including lead developers Shytoshi Kusama and Kaal Dhairya.
Blockchain Data Confirms Fund Movements
Per Etherscan data, the wallet holding the funds moved them to a new address on Sept. 2, three days after Kusama launched the proposal to allow the community to decide what to do with the assets.
It appears the movement came up when it was clear what the community decision was. As reported by The Crypto Basic, as of Sept. 2, an overwhelming 84.55% of the votes chose to escrow the assets in a new multi-sig wallet controlled by four ecosystem team members.
The holder moved the funds to a new address 0x5922 that morning. Interestingly, 0x5922 created another wallet 0x52C5 on the same day, specifically at 23:37 UTC, and then transferred the assets to this wallet.
After receiving the funds, 0x52C5 created three different addresses: 0x7DD7, 0x405F and 0x7718, sending the 37.5 ETH to these addresses in equal proportion on Sept. 3 at 12:05 UTC. Each of the three addresses received 12.49 ETH tokens.
Shortly after getting the 12.49 ETH, each address routed the tokens through another new address to centralized exchanges, possibly for selloffs.
Notably, 0x7DD7 and 0x405F moved their tokens, totaling 24.98 ETH to American exchange Kraken for selloffs. Meanwhile, 0x7718 transferred its share, 12.49 ETH, to Coinbase. With the funds gone, it appears the wallet holder had no intention of respecting the decision of the Shiba Inu community.
Source of the Funds?
According to a blog report authored by Shiba Inu lead developer Shytoshi Kusama, he and the team set out to develop systems to complement the ecosystem and the SHIB DAO.
However, he emphasized that in the second year of preparations, an old “fren” moved the 37.5 ETH earmarked for the DAO without prior authorization. With the assets sitting in the holder’s wallet, Kusama launched the proposal to decide what the DAO should do with the assets.
Of the three choices within the proposal, the Shiba Inu community voted to escrow the tokens in a new multi-sig controlled by members of the ecosystem team. Nonetheless, Kusama expressed concerns earlier on that the wallet holder might not follow the decision of the DAO.
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