The contract allowed repeated attacks because the signatureClaimed variable was not properly checked. The first attacker, reported to be the address 0x85d231c204b82915c909a05847cca8557164c75e, made a profit of 34.47ETH, while the second attacker, known as chandog.eth, made a profit of 0.614ETH.
Following this event, the AzukiDao community proposed legal action against the founder of Azuki, Zagabond. The proposal involves hiring a lawyer to sue Zagabond, alleging that Azuki has multiple “rug” projects, and to reclaim 20,000 ETH withdrawn by the team from Zagabond and distribute it to the DAO to promote the growth of the entire Azuki community and provide rewards and incentives for artists, content creators, and builders. So far, the vote has exceeded the majority and the proposal has been accepted.
A new DAO initiated a proposal to reclaim 20,000 Ether from Zagabond, the founder of Azuki. The proposal outlines hiring a lawyer to take legal action against Zagabond, whose real name is Alex Xu, for allegedly “rugging” multiple projects. The clawback seeks $39 million worth of ETH earned from the launch of Azuki’s controversial “Elementals” NFT collection. It suggests redistributing any funds retrieved back to the DAO to “promote the growth of the entire Azuki community”.
At the time of publication, 88.11% of AzukiDAO (BEAN) tokens have been used to vote in favor of the action, while 11.9% have voted against it. The proposal is scheduled to end at 6:38 am UTC on July 3.
However, while AzukiDAO claims to be made up of “OG Azuki holders,” some have questioned the origins of the DAO and its relationship to members of the Azuki project. Pseudonymous commentator Tytan.ETH informed his 19,000 followers in a July 3 Twitter thread that most Azuki holders had never heard of the AzukiDAO and assumed it was “either fake or a group with malicious intent”.
Data from Etherscan shows the contract for the BEAN token used to vote on the proposal was minted just two days ago, and the associated Twitter page was created only in June 2023. Its Discord channel shows only 116 members.
Holders of Azuki NFTs and pundits from the broader NFT community have levied much criticism at the Azuki team since the controversial launch of its Azuki Elementals collection on June 27. The Elementals project was first hinted at during an Azuki-branded event hosted in Las Vegas on June 23, with a small allocation of the 20,000 NFTs airdropped to select Azuki holders. The remaining NFTs became available for purchase at 4 pm on June 27. Existing holders of Azuki NFTs and holders of “BEANZ” — another derivative project — were given a 20-minute presale window. The sale never went public, as the entire collection was snapped up in private sales in under 15 minutes. In total, the launch earned the Azuki team $38 million.
This situation sparked widespread backlash, with grievances ranging from the small presale window to mint failures due to an overloaded website, and the lack of originality in the new NFTs’ art. NFT holders also expressed concern that releasing 20,000 new NFTs would dilute the value of preexisting NFTs in the collection. The controversy peaked when the project team reportedly transferred 20,000 ETH from the wallet soon after the collection was minted out.