Crypto Chaos: Dough Finance Hack Leads to Million-Dollar Legal Disputes
Dough Finance, a crypto trading platform, suffered a significant hack last year, resulting in millions lost. Founders promised restitution, but their focus shifted to a new partnership with Donald Trump, sparking legal action from investors like Jonathan Lopez who seek compensation for funds stolen in the breach.
In a dramatic turn of events, Dough Finance, a once-promising crypto trading platform, was hacked last summer, leading to the loss of user deposits worth millions. Founders initially pledged to compensate affected users, but communication dwindled as they pursued new ventures with U.S. President Donald Trump and his family, raising eyebrows and legal questions.
Jonathan Lopez, a Miami-based investor, found his million-dollar investment in Dough wiped out after hackers breached the platform. Despite promises from co-founder Chase Herro to make investors whole, Lopez has now taken legal action, accusing Herro of fraud and misrepresentation, while seeking substantial damages in court.
The controversy deepens as Herro and co-founder Zak Folkman shift their focus to a new crypto venture, World Liberty Financial, involving the Trump family. This collaboration has sparked scrutiny over the ethical implications of their dealings, especially given the recent history of crypto platform vulnerabilities and user compensation issues.
(With inputs from agencies.)
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