Anatomy of an Alleged DAO Scam
Anatomy of an Alleged DAO Scam
Anonymous whistleblower group says Avraham Eisenberg scammed millions of dollars from them
**Note: If you don’t know what a DAO is, I would advise you to google “Decentralized Autonomous Organization” to find out for yourself, since I use plenty of DAO jargon in this article. Don’t get caught up in the jargon.
There is a swell of grassroots anger building in the crypto world over $FORT, a mostly dead shitcoin:
As far as I can tell, I am the second person to write about Fortress DAO. The saga was first summarized by Brady Dale of The Defiant in his article Another Fork Bites the Dust: The Looming Fall of Fortress DAO and the Perils of Off-Chain Governance in which he proclaims “fortress Dao is doomed. The question is how it dies.”
After that first article was written, many in the Fortress community expected a swift and brutal crackdown from US authorities and widespread media attention. Neither materialized. Perplexed at the lack of action from law enforcement, a small group of anonymous whistleblowers compiled a 13-page document to summarize the facts of the alleged scam and approached my Substack as a platform to get their message out to the world. Click this button to download their report:
Rather than discuss the logistics of the alleged scam myself, I will simply copy-paste the executive summary from that document:
I sent this paragraph directly to Avraham Eisenberg, and he responded to me, “The DAO overwhelmingly voted for converting the treasury into FUSD, and this was done after FUSD was launched and it was made clear that I was running the FUSD project. This can easily be seen from the timeline. The claim that it was done without approval is blatantly false. It's also false that I'm a NY resident.”
I then sent Eisenberg’s response back to the whistleblower group, who rebutted, “The conversion of FUSD was done in two tranches: one as a bribe attached to redemption, and one that was done in response to ‘MIM depeg fears.’ The MIM depeg one was not voted on, it was just done overnight.”
Anyways, I am not here to debate the facts of this case, or to dive into the minutiea of each individual wallet (or network of wallets). That is the government’s job. I am simply here to spread this document to the world, and maybe if we are lucky we can achieve the critical mass of attention needed to trigger a formal investigation.
Hopefully, crypto Twitter reads this article. If they do, please share it with other crypto influencers:
If you feel that Avraham Eisenberg has stolen from you, it is recommended to file a complaint with the following regulatory bodies: