Shiba Inu $91,000 Mystery: A Donated Dinner, Dissolved Breed, and Disappearing ETH

The disappearance of 37.5 ETH, initially donated to the Shiba Inu community and worth over $91,000 today, has sparked confusion and concern among the ShibArmy.

A Generous Gesture, a Troubled Path

Davinci, the pseudonymous administrator of Shibarium Tech’s Discord and Telegram channels, has stepped forward to provide context, revealing a tangled tale of internal conflicts, a dissolved team, and a community decision seemingly ignored.

The saga began in 2022 with a seemingly generous gesture: Welly’s, the fast-food partner of Shiba Inu, donated 37.5 ETH to the community, intending it to be managed for the benefit of the ShibArmy. The funds were placed in a multi-sig wallet under the control of the Shib Defense Breed, a team not directly affiliated with the core Shiba Inu developers.

Shiba Inu Defense Breed Dissolved and Funds in Limbo

However, in 2023, the Defense Breed team was dissolved by Shytoshi Kusama, the visionary developer of Shiba Inu, following “significant internal issues,” according to Davinci. Despite the team’s dissolution, the ETH remained in the multi-sig wallet, with the Defense Breed lead reportedly refusing to release the funds until a decision was made by the Shiba Inu DAO (decentralized autonomous organization).

Shiba Inu DAO Decision Ignored

Fast forward to 2024, specifically on August 31, Kusama organized a formal DAO vote to determine the fate of the donated ETH. The community overwhelmingly supported moving the funds to a new multi-sig wallet controlled by trusted figures within the Shiba Inu ecosystem, including Kusama himself.

On September 1, Kusama hinted at the significance of these funds, tweeting, “It’s just a start, there are more funds there and incoming.”

But just a day later, before the DAO’s decision could be enacted, the wallet holders—presumably members of the disbanded Defense Breed team—transferred the 37.5 ETH out of the multi-sig wallet. The funds were then routed through a series of newly generated wallets, ultimately ending up on the centralized exchanges Kraken and Coinbase, suggesting an intent to sell the assets.

Davinci’s Explanation

Davinci, in their explanation to the Shiba Inu community, emphasized that the individuals who absconded with the funds were “considered untrustworthy and dangerous,” which ultimately led to the Defense Breed’s dissolution.

They urged the community to avoid overreacting: “Before you become dramatic, remember these individuals were considered untrustworthy and dangerous, which is why they were removed. So, keep in mind what Shytoshi said.”

Decentralized Governance: A Promise and a Peril?

The incident raises questions about the effectiveness of decentralized governance, particularly when entrusted to individuals who may not share the community’s best interests. It also highlights the challenges of recovering funds in a decentralized system where accountability can be elusive.

While the future of the 37.5 ETH remains uncertain, the incident serves as a cautionary tale for the Shiba Inu community and the broader crypto world, emphasizing the importance of transparency, trust, and due diligence in navigating the decentralized landscape.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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