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Julia Smith
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Julia Smith
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Clients of Dough Finance, a trading platform launched by World Liberty Financial co-founder Chase Herro, are still waiting to be “made whole” after a hack drained millions of dollars in user funds, a Monday report from Reuters reveals.
Hackers Exploit Dough Finance, Steal $2.5 Million
According to a May 19 report from the media outlet, an investor named Jonathan Lopez invested $1 million in cryptocurrency through Dough Finance in May 2024.
Lopez reportedly paid a 5% fee to the crypto company for the investment, while Herro “personally showed” him how to use the novel platform.
Lopez subsequently bolstered his funds through “looping,” wherein he was able to purchase the same digital asset before using the newly acquired crypto as collateral to buy even more of the coin in a bid to up his holdings.
But it all came crashing down just two months later when hackers exploited a vulnerability in Dough Finance’s code on July 12, draining $2.5 million from Lopez’s account.
Dough Finance Facing Client Lawsuit After Funds Wiped
According to Reuters, Herro’s long-standing business partner, Zachary Folkman, claimed that the organization would “not stop” until everyone affected was “made whole.”
“Dough Finance is committed to maintaining the highest standards of security and transparency,” the company said in a July statement. “We acknowledge our mistake and are deeply sorry.”
“We will continue to work diligently to protect our users and their assets, learning from this incident to enhance our security posture,” the organization added.
However, Folkman and Herro allegedly stopped responding to the Telegram channel by August 18.
The Trump-affiliated digital asset organization, World Liberty Financial, was unveiled the next month, with Herro and Folkman named as partners in the crypto venture.
Dough Finance announced it would give away proprietary tokens equivalent to the missing funds that would be exchangeable for ETH in August 2024, though not all clients were happy with the offering.
Lopez is moving forward with a lawsuit against Herro, set to go to trial in April 2026.
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