Dough Finance, a DeFi platform founded by Chase Herro and Zak Folkman, collapsed in July 2024 after a flash-loan exploit resulted in a $2.5 million loss for investors. Despite initial promises to recover funds and compensate users through tokens, only $281,000 was ever returned. The case illustrates the growing trend of users pursuing legal action against failed crypto platforms. Just two months after Dough’s collapse, the founders relaunched as World Liberty Financial (WLFI) in September 2024, securing significant backing from political figures, including the Trump family. WLFI raised $550 million, with 75% of revenue funneled to a Trump-linked entity, raising concerns about its decentralized claims. The story highlights the troubling pattern of crypto founders reemerging with new ventures despite unresolved fraud allegations. Investors are cautioned to scrutinize such platforms, especially when past performance raises red flags about safety and accountability.

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