After paying nearly $40 million for a new set of Azuki NFTs, the Azuki community is pissed that they were “dilutive” near-copies of the original Azuki collection. To fight back against the perceived “blatant scamming” by the Azuki creators, holders claiming to have collectively spent millions on Azuki projects formed an Azuki DAO. The DAO created a governance token, $BEAN, which it distributed to Azuki NFT owners. The DAO then embarked on a vote to hire a lawyer, sue Azuki’s creator, and demand a refund of the 20,000 ETH ($38 million) collectively spent on Elementals NFTs.However, shortly after the DAO was created, the governance token was exploited. Attackers were able to take advantage of a flaw in the smart contract, with two exploiters stealing around 35 ETH ($69,000). The DAO paused the contract to prevent further thefts.File this one under “adding insult to injury”.

Total loss estimated at $69,000.