Hector Network, a DeFi project, has seen its team ‘rage quit’ after squandering a $100 million treasury. This move has left investors with a fraction of their stakes, and the project’s native token, HEC, has lost 99% of its value amid a governance crisis.
The team running Hector Network, who goes by pseudonymous names like Zeus, Poseidon, Prometheus, and Agenor, decided to ‘rage quit’ the project after claiming that the losses suffered in the Multichain security incident on July 6 caused significant damage to its ability to operate. They proposed the treasury be liquidated and the proceeds distributed to token-holders on a pro-rata basis.
This decision comes after the project reportedly lost $8 million worth of crypto assets when funds were mysteriously removed from the coffers of the crypto bridge protocol Multichain earlier in July. Hector Network is a DeFi ecosystem project based on Fantom, a smart contract platform. As a result, Hector was swept up in the Multichain fiasco because it was a major bridge protocol on the Fantom blockchain.
Investors are furious with the move, and some have accused the team of ‘slow rugging’ investors. Slow rugging is when a project team steadily drains the treasury by paying themselves high salaries while failing to deliver value for investors who are left holding worthless tokens. Critics of the Hector Network team have alleged gross mismanagement of the project over the last 18 months. They say team members enriched themselves with $52 million in salaries over this period without delivering any useful products.
