Crypto Catastrophe: Founders Flee After $2.5 Million Hack! 😂💸

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In a rather unfortunate twist of fate, it appears that the illustrious co-founders of World Liberty Financial (WLFI), Chase Herro and Zak Folkman, have chosen to turn a blind eye to their previous clients at Dough Finance, following a rather embarrassing $2.5 million hack.

Ah, the sweet scent of lawsuits fills the air! Herro finds himself in the hot seat, being pursued by a disgruntled Dough investor eager to reclaim his lost treasures. And while World Liberty may be a project associated with the Trump family, rest assured, the Trumps are blissfully unaware of this little debacle. One can only hope this detail will grease the wheels for a swift resolution. 🤞

WLFI Co-Founder in Hot Water Over Dough Disaster

The crypto realm has witnessed its fair share of notorious hacking escapades, yet it is the smaller incidents that often resurface with a vengeance.

Today, Reuters has brought to light a breach from July 2024 that left Dough Finance in tatters, losing a staggering $2.5 million. The firm promptly shut its doors, and in a twist of fate, the co-founders hastily launched WLFI, leaving investors scratching their heads:

“YOU—the Dough Finance community—have passed the governance vote to make token holders whole! With a resounding 99.5% support, your voices have been heard! The team is now working on fund distribution—stay tuned for updates!” Alas, this was the last we heard from Dough, as they fell silent thereafter.

In the aftermath of the hack, Dough’s team sheepishly admitted their blunders that paved the way for the theft. They managed to recover a mere $280,000, of which $180,000 was reportedly handed over to former creditors. How generous! 🙄

However, since the inception of WLFI alongside Zack Witkoff, the silence has been deafening.

Among Donald Trump’s various crypto ventures, World Liberty Financial is currently the talk of the town. With major partnerships and political shenanigans, Herro and Folkman’s new venture is making headlines and raking in some serious dough. 💰

But one must ponder, why have the co-founders of WLFI not repaid their former Dough backers? Just last Friday, World Liberty splurged $3 million on EOS tokens, a sum that comfortably overshadows the losses from the hack.

WLFI’s USD1 boasts a market cap exceeding $2 billion; a $2.5 million reimbursement is but a drop in the ocean. So, what’s the hold-up? 🤔

This very question lies at the heart of a lawsuit filed by a former Dough investor against WLFI’s Chase Herro. Reuters reports that the plaintiff, Jonathan Lopez, has chosen to focus solely on Herro, leaving Folkman and WLFI out of the equation.

Since the fateful July 2024 hack, users have primarily received their reimbursements in DOUGH tokens, which, in 2025, are about as valuable as a chocolate teapot:

As it stands, the trial date for this suit is set for April 2026. One can only hope that the WLFI co-founders will find it in their hearts to settle with Dough’s creditors before then.

Regardless of the outcome, while WLFI may be a Trump family endeavor, none of the Trumps seem to have any connection or responsibility for this little fiasco. Perhaps this will inspire Herro and Folkman to resolve the matter with a touch of grace. 😏

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2025-05-20 03:16