Home / NFTs / Azuki NFT Community Wants to Hire Lawyer to Sue Founder for $39M After Elementals Flop
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Azuki NFT Community Wants to Hire Lawyer to Sue Founder for $39M After Elementals Flop

Published July 3, 2023 2:23 PM
Omar Elorfaly
Published July 3, 2023 2:23 PM

Key Takeaways

  • Azuki community wants to sue creator Zagabond
  • OG Azuki holders suffered a huge loss after the Elemental collection release
  • Azuki DAO is under attack

Azuki is a community-driven NFT project created by Zagabond. The artist and project have recently been scrutinized by the community after the release of the Elemental collection. The collection featured NFT images that strongly resemble the original Azuki collection, dubbed Azuki OG by the community.

Holders of Azuki OG suffered a severe loss in their collections’ values following the Elemental disaster. Now, the Azuki community is calling for legal action to be taken against Zagabond for “blatantly scamming us with empathy checks and promises.”

Community Project Gone Bad

Azuki was blasted last week after selling the Elemental collection for $38 million in 15 minutes. The main problem with the collection is that it strongly resembled the original OG collection. The release of the Elemental collection caused the original collection’s value to drop by over 40%. 

Now, the community  is targeting a lawsuit against the creator Zagabond, aiming to strip away the 20,000 ETH they made selling Elemental. 

A community page stated that “Despite our efforts, we have only been given a similar profile picture to that of the original Azuki holders, and nothing more. The Team is blatantly scamming us with empathy checks and promises.”

A motion was filed on the webpage, gaining an 88.35% approval rating, motioning the following:

  1. Azuki DAO hires a lawyer and files a lawsuit against Zagabond for rugging multiple projects.
  2. Azuki DAO retrieves a refund of 20,000E from the team and allocates it to the Dao to promote the growth of the entire Azuki community and provide rewards and incentives for artists, content creators, and builders.
  3. Azuki DAO provides financial support to 20000E DAO. The fund will be used to help us organize a research Team for the Lawsuit.

DAO stands for “Decentralized Autonomous Organization”, essentially a party neither tied to the creator nor the community.

Azuki DAO Is Not Safe

A crypto analyst by the name of @MetaSleuth brought the Azuki community’s attention to an attack on Azuki Dao that resulted in the theft of 35 ETH. 

@MetaSleuth cited that the vulnerability that caused the attack lay within the fact that “the signatureClaimed variable in the contract was not properly checked”, and that now “the contract is paused”.

Azuki DAO confirmed the attack that resulted in the crypto theft, adding that “we close the claiming window and decide to make a proposal that transfer all the tokens to the DAO treasury, and then we will elect the muti-sign contributor from the community.”