Transparency Commission Report: Digital Fashion DesignDAO (Approved)
Submission ID: ab24c793-22f6-4d7e-9685-6779ae76db40
Submission time: 2024-04-02T12:26:06.644Z
Subject of Investigation: Digital Fashion Design DAO
Nature of Investigation: Financial Irregularities
Summary of the report: DAO Owner sent rewards to own wallet.
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Digital Fashion Design DAO organized a bounty contest in February and community members reported that one of the DAO members has sent rewards to his/her wallet.
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It’s a common practice for DAO owners/members to send funds to activate a wallet with 0.1N for a DAO member. However, after conducting a thorough investigation, it appears that all the winners’ wallets were activated by the DAO Member. Additionally, once the winners received prize money from the DAO (digitalfashion.mintbase1.near), they sent the funds to the DAO Member (styleherbalist.near) @Styleherbalist . Furthermore, all the wallets were recently created and have not undergone IAH, which I assume is used by all DAOs as basic KYC for distributing rewards.
Winners Details: https://twitter.com/Nearfashiondao/status/1773971521649729663
Screenshots for reference:
A few members have also shared on Twitter allegations of wrongdoing by the DAO Member: https://twitter.com/Chand192837/status/1773992866874110065
Conclusion and TC recommendations:
- The DAO Member @Styleherbalist should return the funds to the DAO Treasury and issue a public apology for the manipulation that has affected all participants in the campaign.
- Re-announce the winners of the campaign.
- If the funds are not returned, consider restricting Digital Fashion DAO from receiving any further funding from CDAO. Tagging CDAO Councils @kc_sollano @Paul @williamx for visibility.