Aragon DAO, a decentralized autonomous organization, recently passed two important votes that demonstrate support for a lawsuit against its founding team. As part of this decision, $300,000 in funding has been allocated to cover the legal battle. The proposal received unanimous approval during the voting process, with an impressive 1.6 million governance tokens cast in favor, according to the official voting results.
The Decision to Take Legal Action
This move comes as a response to the Aragon Association’s independent decision to dissolve itself and discontinue its governance token, ANT, through redemptions for ether. The decision was made without consulting the DAO and was motivated by legal constraints. This unilateral action raised concerns about the Aragon Association potentially retaining $50 million without a vote from the community. Therefore, the proposed lawsuit intends to challenge this decision and hold the responsible members of the Aragon Association accountable. The goal is to ensure that investor funds are returned and not absorbed by the association’s new undisclosed company.
Funding the Lawsuit
To initiate legal action and negotiate with the Aragon team, the DAO has allocated $300,000 in funding to Patagon Management LLC, an investment company owned by Diogenes Casares. Patagon has previously pursued legal action against Wei “Max” Wu in relation to the Spartacus DAO, where token holders experienced losses due to a similar restructuring. The funds for the lawsuit have been transferred to Patagon’s wallet in the stablecoin USDC.
The proposal also allows other individuals to contribute financially to the lawsuit. In the event that the case is won, these contributors will receive their funds back with a 10% annual interest rate and a 5% share of the total funds to be returned to token holders. However, if the case is lost, they will not receive compensation.
Oversight Committee
An oversight committee has been established to monitor the progress of the lawsuit. This committee consists of representatives from investment firm Arca, crypto trader DCF God, and pseudonymous individuals known as Wismerhill, Tedward, CM, Triangular, and Yakitori.
The Aragon Association has expressed concerns about the recent vote, pointing out that a significant number of Aragon token holders have already redeemed their tokens. They argue that this suggests the vote may not fully represent the entire Aragon community. The Aragon core team clarified that they are not part of the Aragon Association and had no decision-making power in the association’s dissolution.
It is important to note that certain individuals associated with the potential lawsuit against Aragon and serving on the oversight committee have been previously involved in disputes and dealings with decentralized autonomous organizations (DAOs). The RFV Raiders, a group of crypto activists, have been linked to efforts aimed at shutting down DAOs and distributing their treasuries among token holders. Additionally, Aragon has indirectly implied that Avraham Eisenberg, who took responsibility for the attack on Mango Markets, may have belonged to this group.
