Crowdfunding DAO Fund Hacked

The Decentralized Autonomous Organization (DAO) raised $150 Million crowdfunding a new investment fund to finance ventures that would advance the crypto-currency Ethereum.

Investors traded cash for Ethereum and got tradable DAO tokens in return, which gave them the right to vote on which investments the fund would make.

Last week DAO was hacked and someone stole $55 Million, dropping the value of Ethereum by 38%. Slock.It, the group that created DAO, claims that all funds will be retrieved from the attacker but the fund is dissolving.

Welcome to the Wild West of digital currency.
http://www.wsj.com/articles/investment-fund-based-on-digital-currency-to-wind-down-after-alleged-hack-1466175033

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Banking, Banks, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Department of the Treasury, deposits, Dodd Frank, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s