When Crypto Ventures Go Awry: A Tale of Abandonment and Deceit

It is with no small measure of astonishment that we find ourselves contemplating the recent conduct of two gentlemen, partners in the crypto enterprise of World Liberty Financial, under the auspices of none other than President Donald Trump. These gentlemen, Chase Herro and Zak Folkman, have been accused of leaving their investors in a most lamentable state of abandonment, following a rather unfortunate incident involving a Decentralized Finance (DeFi) project that suffered a grievous exploit amounting to $2.5 million nearly a year past. 😱

From Exploited Protocol To Trump’s Crypto Partners

On a Monday most unremarkable, the esteemed Reuters reported that our two protagonists, Herro and Folkman, had indeed forsaken their loyal customers from the DeFi Protocol known as Dough Finance, which had been so cruelly exploited. One cannot help but wonder if they were merely following the example set by the great Mr. Wickham, who also had a penchant for leaving a trail of disillusioned souls in his wake. 😏

Dough Finance, co-founded by these gentlemen, was intended to be an open-source protocol for the creation of non-custodial liquidity markets. Alas, last year, it fell victim to a flash loan attack, resulting in the loss of over $2.55 million in USDC and Ethereum (ETH). One might say that the hackers were more successful than the founders themselves! 💸

As reported by Bitcoinist, on the fateful day of July 12, a nefarious hacker manipulated Dough Finance’s smart contract, absconding with the funds of unsuspecting users, leaving them as empty as a tea cup after a particularly lively gathering. The protocol’s team, in a display of gallant desperation, sent an on-chain message to the perpetrator, offering a white hat bounty should the funds be returned. How noble! Or perhaps just naive? 🤔

By late July, a mere 76.2 ETH, valued at approximately $281,000, had been recovered by the cybersecurity firm SEAL 911, with promises made to distribute these funds to the beleaguered investors. However, despite the distribution of around $180,000 worth of ETH from the project’s official wallet to 134 addresses in September, many investors lamented to Reuters that they had yet to see a single coin. How very Austenian! 😅

In a rather apologetic Medium post, the DeFi project acknowledged the vulnerabilities in their code that had allowed such a calamity to occur. “We shall strive diligently to protect our users and their assets,” they vowed, “learning from this incident to enhance our security posture.” A fine sentiment, indeed! But alas, two months after the collapse, our intrepid co-founders seemed to have abandoned their customers entirely, launching a new crypto venture, WLFI, alongside President Trump and his three sons. One can only imagine the family discussions over dinner! 🍽️

Following the announcement of their new venture, whispers arose online, suggesting that the language in the leaked WLFI white paper bore a striking resemblance to that of Dough Finance. How scandalous! 😲

Dough Finance Customers Left Empty-Handed

Reuters highlighted that Folkman and Herro had promised not to cease their efforts “until everyone is made whole” in a message to a Telegram channel boasting 2,700 Dough Finance users. Yet, it appears that their promises were as fleeting as a summer romance, for they ceased all updates after August 18 and even deleted another Telegram group. How very convenient! 🙄

Moreover, the Dough Finance website has been shuttered, and the project now boasts a Total Value Locked (TVL) of a paltry $1,689, according to DeFiLlama data. One might say it is a rather dismal state of affairs! 😩

In a twist befitting a dramatic novel, an investor has taken legal action against Herro in Florida for fraud, misrepresentation, and breach of financial duties. The lawsuit, filed on January 27, 2025, claims that Jonathan Lopez, a customer of Dough Finance, invested nearly 300 ETH based on Herro’s representations. One can only hope that justice prevails! ⚖️

Ten victims, speaking under the veil of anonymity, recounted their last communication with Dough Finance, which occurred four months ago on January 13, when they were promised a solution “this week.” Alas, no compensation has been forthcoming. How tragic! 😢

According to Reuters, Herro and Folkman have reportedly amassed at least $65 million from their share of WLFI’s revenues, based on disclosed proceeds from the sale of over $550 million in tokens. One cannot help but wonder if they might have shared a portion of their newfound wealth with those they left behind. But alas, such is the nature of the world we inhabit! 💔

Read More

• Vampire’s Fall 2 redeem codes and how to use them (June 2025)

• GEN vs AL was another extremely close LoL match at MSI 2025

• Unmasking Ironheart: Ranking Her MCU Suits by Comic Book Accuracy!

• City of the Wolves descends on Riyadh! Your guide to FATAL FURY at EWC 2025

• WEBZEN’s MU: Pocket Knights offers a cute spin on the legendary MU series, set to launch in the second half of 2025

• Marilyn Manson sparks controversy as he appears at Black Sabbath’s farewell show and pays tribute to Ozzy Osbourne in video message – after his UK gig was axed amid backlash

• Scarlett Johansson becomes highest-grossing lead actor EVER after Jurassic Park Rebirth opens with $318M

• BLACKPINK Wants You To “JUMP” With Lively New Single

• T1 has a difficult match vs CFO, still advance to the semis of LoL MSI 2025

• Does Jurassic World Rebirth have a post-credit scene?

2025-05-20 10:55