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.

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:
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