Summary:
- Dough Finance, a crypto platform founded by Chase Herro, lost $2.5 million to hackers in July 2024.
- Investor Jonathan Lopez lost $1M after being shown how to use the platform by Herro himself.
- The hack stemmed from a code vulnerability, exploited just two months after Lopez’s investment.
- The founders promised restitution, but later went silent.
- Dough Finance offered proprietary tokens as compensation, but users remain dissatisfied.
- Lopez is suing Herro; trial is set for April 2026.
A Promising Start Ends in Chaos
When Jonathan Lopez invested $1 million in Dough Finance in May 2024, it seemed like a smart move. The platform, launched by World Liberty Financial co-founder Chase Herro, appeared to be an innovative player in the crypto trading space. Herro even “personally showed” Lopez how to navigate the new platform, which involved a strategy known as “looping”—leveraging crypto assets to acquire more of the same coin.
However, just two months later, Lopez’s confidence was shattered when hackers exploited a vulnerability in Dough Finance’s code, draining $2.5 million—a substantial portion of his investment.
Public Promises, Private Silence
In the wake of the July 12 breach, Herro’s longtime business partner Zachary Folkman assured investors:
“We will not stop until everyone affected is made whole.”
Dough Finance also issued a public apology, stating:
“We acknowledge our mistake and are deeply sorry.”
“We will continue to work diligently to protect our users and their assets.”
But by August 18, both Herro and Folkman had stopped responding to concerned clients in the platform’s Telegram channel.
A Token Effort Falls Flat
In an attempt to make amends, Dough Finance announced a token giveaway equivalent to the lost funds, promising they’d eventually be redeemable for ETH. But the move failed to satisfy many users, who viewed it as an inadequate substitute for their lost investments.
To add fuel to the fire, Herro and Folkman surfaced in a new crypto venture—World Liberty Financial—just a month after going silent, raising eyebrows and suspicions among the Dough Finance community.
Legal Battle Looms
Investor Jonathan Lopez is now pursuing legal action against Herro, with the case expected to go to trial in April 2026. Many other users continue to demand transparency and restitution as trust in Dough Finance continues to erode.
Final Thoughts:
The Dough Finance incident highlights the ongoing challenges and risks in the world of decentralized finance. While the founders made initial efforts to address the situation, their subsequent silence and new affiliations have only intensified users’ frustrations. As the lawsuit unfolds, the crypto community will be watching closely.