Validators shut down as Secret Network struggles with leadership
Jan. 30, 2023 at 4:00 am
By Liam 'Akiba' Wright
Secret Foundation founder, Tor Bair, accused of taking 'six figure' dividends
SmartStake, a major validator in the Cosmos ecosystem, has announced that it will shut down its nodes following revelations around the Secret Foundation’s founder, Tor Bair, personally taking profits.
Validator exodus
The validator cited “complex/stressful validator operations… cost/effort of validator ops… recent events” as the reasons for shutting down its service. Smartstake further stated
“Please note that the shutdown will be graceful and there will be no slashing for any of the delegates.”
NotionalDAO, another Cosmos validator, has echoed SmartStake’s statement with CEO, Jacob Gadikian, confirming that “NotionalDAO will not be bringing up its node again, in solidarity with SmartStake.”
Secret leadership conflict
The allegations against Bair were revealed on Jan. 27 via the foundation’s governance forum. Guy Zyskind, the founder of Secret Labs, posted the statement in which the allegations were made public.
Zyskind disclosed that “Secret Foundation sold a substantial amount of USD worth of SCRT.” In addition, “Tor cashed out a significant portion of these proceeds… as a dividend.” These actions were not disclosed to the community, with roughly $4 million withdrawn in Q4 2021 alone.
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