{"investigation":{"slug":"azukidao","entity_name":"AzukiDAO","trust_score":28,"severity_base":null,"score_modifier":0,"confidence":0.72,"status":"published","content_type":"investigation","summary":"AzukiDAO is an informal decentralized autonomous organization formed in late June 2023 by a self-described group of 72 to 74 Azuki NFT holders in response to widespread community outrage over the Azuki Elementals NFT launch. Within days of its formation, AzukiDAO's BEAN governance token airdrop contract was exploited via a signature replay vulnerability, resulting in the theft of approximately 35 ETH ($68,000). On-chain investigator ZachXBT had previously flagged the Azuki project's founder Zagabond (Alex Xu) for alleged involvement in multiple prior abandoned NFT projects, and his findings were central to the community grievances that motivated AzukiDAO's creation.","sections":[{"content":"AzukiDAO was formed in late June 2023 by a group of self-described 'diamond-handed' Azuki NFT holders following the controversial launch of the Azuki Elementals collection on June 27, 2023. The organization claimed to consist of ex-core contributors to the Azuki project and long-term NFT holders. The stated purpose of the DAO was to coordinate legal action against Chiru Labs and its founder, known pseudonymously as Zagabond (identified publicly as Alex Xu), to recover the approximately 20,000 ETH (approximately $38 million at the time) raised during the Elementals mint. AzukiDAO comprised approximately 72 to 74 members at formation and was not affiliated with or recognized by Chiru Labs or the official Azuki project. Skepticism about the organization's legitimacy surfaced immediately: NFT community figures noted that most Azuki holders had never heard of the group, and that the BEAN governance token contract had been deployed only two days before the first governance vote was proposed. Critics alleged the group was either fabricated or operated with undisclosed motives.","heading":"Background and Formation","sources":[{"url":"https://www.coindesk.com/web3/2023/07/03/azukidao-votes-on-reclaim-of-20k-ether-after-botched-elementals-nft-mint","name":"coindesk.com","type":"other","credibility":3},{"url":"https://decrypt.co/147115/angry-azuki-elementals-holders-unite-to-demand-39-million-refund-lose-thousands-more-in-subsequent-hack","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.bitdegree.org/crypto/news/azukidao-aims-to-claw-back-20000-ether-from-azuki-nft-founder-zagabond","name":"bitdegree.org","type":"other","credibility":3}],"severity":"medium"},{"content":"The Azuki Elementals collection launched on June 27, 2023, selling out 20,000 NFTs within approximately 15 minutes and generating roughly $38 million in revenue for Chiru Labs. The community's reaction was sharply negative on multiple grounds. Holders criticized the artwork as nearly identical to the original Azuki collection, alleging the release was 'dilutive' to the value of existing Azuki NFTs. The presale window was described as insufficient, and the minting website experienced failures due to overloaded infrastructure. The absence of maximum minting limits meant the entire Elementals supply was absorbed by Azuki and Beanz holders before any public mint phase. Following the launch, the floor price of Elementals NFTs collapsed from 2 ETH at mint to approximately 0.878 ETH, representing a loss of more than 50 percent for mint participants. AzukiDAO members demanded a full refund of the 20,000 ETH raised, framing the launch as a deliberate deception. An 88.35 percent majority of BEAN token voting weight supported a proposal to redirect Elementals mint proceeds back to the Azuki community.","heading":"The Azuki Elementals Controversy","sources":[{"url":"https://decrypt.co/147115/angry-azuki-elementals-holders-unite-to-demand-39-million-refund-lose-thousands-more-in-subsequent-hack","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.coindesk.com/web3/2023/07/03/azukidao-votes-on-reclaim-of-20k-ether-after-botched-elementals-nft-mint","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cryptodaily.co.uk/2023/07/azuki-dao-to-sue-project-founder-over-allegations-of-misconduct","name":"cryptodaily.co.uk","type":"other","credibility":3}],"severity":"medium"},{"content":"On June 30, 2023, within hours of the BEAN governance token airdrop contract going live, two attackers exploited a critical vulnerability in the contract code. The root cause was a missing validation check: the contract maintained a mapping called signatureClaimed to track whether a given signature had already been used to claim BEAN tokens, but this mapping was never enforced with a require statement inside the claim function. As a result, an attacker could replay the same valid signature an unlimited number of times, draining the airdrop pool with repeated calls. The primary attacker, at address 0x85D231C204B82915c909A05847CCa8557164c75e, drained approximately 34.47 ETH from the contract. A secondary attacker, at address 0x8Eadc7Cc0a77594e3fA999e80e1cCb7F4e1c04E0, extracted approximately 0.614 ETH. Combined, the two attackers removed approximately 1.79 million BEAN tokens and converted them to approximately 35.08 ETH, valued at roughly $68,000 at the time. The vulnerable contract address was 0x8189AFBE7b0e81daE735EF027cd31371b3974FeB. The exploit was publicly disclosed on July 4, 2023 via BlockSec's MetaSleuth tool. Blockchain security firm Dedaub confirmed the replay attack vector on-chain. The developers paused the claim contract to prevent further losses following discovery. Technical analysis firm QuillAudits published a detailed post-mortem confirming the missing require check as the definitive root cause.","heading":"Smart Contract Exploit — Signature Replay Vulnerability","sources":[{"url":"https://www.dlnews.com/articles/defi/hackers-steal-35-eth-in-azukidao-airdrop-exploit/","name":"dlnews.com","type":"other","credibility":3},{"url":"https://www.quillaudits.com/blog/hack-analysis/azuki-dao-hack","name":"quillaudits.com","type":"other","credibility":3},{"url":"https://x.com/dedaub/status/1675983033168453632","name":"x.com","type":"other","credibility":3},{"url":"https://www.web3isgoinggreat.com/single/azukidao-exploit","name":"web3isgoinggreat.com","type":"other","credibility":3},{"url":"https://cryptorank.io/news/feed/5ad75-199775-azukidao-suffers-exploit-leads-to-35-eth-loss","name":"cryptorank.io","type":"other","credibility":3}],"severity":"medium"},{"content":"On-chain investigator ZachXBT played a significant role in the broader Azuki ecosystem controversy that gave rise to AzukiDAO. In May 2022, after Azuki founder Zagabond published a blog post acknowledging prior involvement in three NFT projects — CryptoPhunks, Tendies, and CryptoZunks — ZachXBT publicly alleged that Zagabond had 'rug pulled three projects in less than a year' and profited millions of dollars while buyers were left with worthless assets. ZachXBT's on-chain analysis alleged Zagabond extracted approximately $3 million across the three projects. Zagabond disputed the characterization, stating the failures were due to lack of product-market fit and not intentional exits. Despite Zagabond's defense, the Azuki NFT floor price dropped approximately 50 percent — from roughly 20 ETH to 10 ETH — following the public disclosures. ZachXBT's findings were cited extensively by AzukiDAO members as evidence of a pattern of misconduct when framing their demands for a refund and legal action in June–July 2023. ZachXBT's prior flagging of the Azuki ecosystem is thus a foundational element of the grievance narrative that led to AzukiDAO's formation, even though no specific ZachXBT post targeting AzukiDAO itself has been independently verified at time of writing.","heading":"ZachXBT Flagging — Zagabond and Prior Project History","sources":[{"url":"https://coinpaper.com/248/azuki-founder-admits-to-rugging-three-projects-in-a-year","name":"coinpaper.com","type":"other","credibility":3},{"url":"https://www.techtimes.com/articles/275285/20220511/azuki-nft-three-failed-projects-floor-price.htm","name":"techtimes.com","type":"other","credibility":3},{"url":"https://nftnow.com/news/azuki-creator-in-hot-water-amidst-rug-pull-allegations/","name":"nftnow.com","type":"other","credibility":3},{"url":"https://beincrypto.com/azuki-nfts-creator-to-refund-investors-after-admitting-to-rug-pulls/","name":"beincrypto.com","type":"other","credibility":3}],"severity":"medium"},{"content":"AzukiDAO's governance structure and token design raised significant legitimacy questions from independent observers at the time of its formation. The BEAN governance token contract was deployed only two days before the first major governance proposal was submitted, which critics noted was an insufficient period to conduct any meaningful community review or security audit. Nfty Finance founder @Tytaninc observed publicly that 'most Azuki holders have never heard of this group,' characterizing the organization as unrepresentative of the broader Azuki community. The voting concentration was also noted as anomalous: of the 36 votes cast on the 20,000 ETH reclamation proposal, approximately 40 percent of affirmative votes came from a single wallet holder. The BEAN token launched with a total supply of one billion tokens, and post-exploit data showed 0 in verifiable public circulation, indicating the token retained no material market value after the airdrop was paused. AzukiDAO presented no formal documentation establishing its legal standing to pursue claims on behalf of Azuki NFT holders generally, and Chiru Labs did not acknowledge the DAO or its proposals. No subsequent confirmed legal filings by AzukiDAO against Zagabond or Chiru Labs have been identified in public court records as of the time of this investigation.","heading":"Governance Legitimacy and BEAN Token Concerns","sources":[{"url":"https://www.coindesk.com/web3/2023/07/03/azukidao-votes-on-reclaim-of-20k-ether-after-botched-elementals-nft-mint","name":"coindesk.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/currencies/azukidao/","name":"coinmarketcap.com","type":"other","credibility":3},{"url":"https://decrypt.co/147115/angry-azuki-elementals-holders-unite-to-demand-39-million-refund-lose-thousands-more-in-subsequent-hack","name":"decrypt.co","type":"other","credibility":3}],"severity":"medium"},{"content":"The AzukiDAO exploit occurred against a backdrop of recurring security incidents across the wider Azuki ecosystem. In January 2023, the official Azuki Twitter/X account was compromised by attackers who posted wallet-draining links purporting to be a 'land mint' for the Azuki metaverse platform, The Garden. Within approximately 30 minutes, the attackers drained over $750,000 in assets including USDC, 11 NFTs, and over 3.9 ETH via the malicious links. Separately, in February 2023, scam Twitter accounts impersonating Azuki-affiliated figures conducted fake giveaway schemes draining over 80.3 ETH ($136,500) from victims across more than 13 fraudulent projects. These incidents are distinct from AzukiDAO but illustrate a persistent pattern of bad actors exploiting the Azuki brand and community trust.","heading":"Broader Azuki Security Incidents","sources":[{"url":"https://decrypt.co/120144/azuki-twitter-account-hacked","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.coindesk.com/web3/2023/01/27/nft-collection-azukis-twitter-account-hacked-leading-followers-to-malicious-link","name":"coindesk.com","type":"other","credibility":3},{"url":"https://crypto.news/two-scam-twitter-accounts-rugged-over-80-3-eth-last-month/","name":"crypto.news","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2022-05-09","event":"Azuki founder Zagabond publishes blog post acknowledging prior involvement in three abandoned NFT projects: CryptoPhunks, Tendies, and CryptoZunks. ZachXBT alleges Zagabond profited approximately $3 million while holders were left with worthless assets. Azuki floor price drops roughly 50 percent.","source":""},{"date":"2023-01-27","event":"Official Azuki Twitter account is hacked; attackers post malicious 'land mint' links and drain over $750,000 in USDC, NFTs, and ETH within 30 minutes.","source":""},{"date":"2023-06-27","event":"Azuki Elementals NFT collection launches. 20,000 NFTs sell out in 15 minutes, generating approximately $38 million for Chiru Labs. Community backlash erupts over artwork similarity to original Azuki collection and floor price collapse.","source":""},{"date":"2023-06-29","event":"AzukiDAO BEAN governance token contract deployed on Ethereum, approximately two days before the first governance vote is submitted.","source":""},{"date":"2023-06-30","event":"AzukiDAO officially formed by approximately 72 to 74 self-described Azuki holders. BEAN token airdrop to Azuki NFT holders begins. Exploit occurs: two attackers drain approximately 35.08 ETH ($68,000) via a signature replay vulnerability in the airdrop contract. Developers pause the contract.","source":""},{"date":"2023-07-02","event":"AzukiDAO submits governance proposal to hire lawyers and sue Zagabond, seeking recovery of 20,000 ETH from Chiru Labs.","source":""},{"date":"2023-07-03","event":"AzukiDAO governance vote closes. 88.35 percent of BEAN token voting weight supports the proposal to recover Elementals mint proceeds. CoinDesk reports on the vote. Exploit is further detailed in press.","source":""},{"date":"2023-07-04","event":"BlockSec MetaSleuth publicly discloses full details of the AzukiDAO signature replay exploit. Dedaub confirms the vulnerability on-chain.","source":""}],"sources_used":[{"url":"https://www.coindesk.com/web3/2023/07/03/azukidao-votes-on-reclaim-of-20k-ether-after-botched-elementals-nft-mint","name":"coindesk.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://decrypt.co/147115/angry-azuki-elementals-holders-unite-to-demand-39-million-refund-lose-thousands-more-in-subsequent-hack","name":"decrypt.co","type":"other","archive_url":"http://web.archive.org/web/20260513162429/https://decrypt.co/147115/angry-azuki-elementals-holders-unite-to-demand-39-million-refund-lose-thousands-more-in-subsequent-hack","credibility":3,"archive_timestamp":"2026-05-13T16:24:29+00:00"},{"url":"https://www.bitdegree.org/crypto/news/azukidao-aims-to-claw-back-20000-ether-from-azuki-nft-founder-zagabond","name":"bitdegree.org","type":"other","archive_url":"https://web.archive.org/web/20260830003444/https://www.bitdegree.org/crypto/news/azukidao-aims-to-claw-back-20000-ether-from-azuki-nft-founder-zagabond","credibility":3,"archive_timestamp":"2026-08-30T00:34:44+00:00"},{"url":"https://cryptodaily.co.uk/2023/07/azuki-dao-to-sue-project-founder-over-allegations-of-misconduct","name":"cryptodaily.co.uk","type":"other","archive_url":"https://web.archive.org/web/20260829234741/https://cryptodaily.co.uk/2023/07/azuki-dao-to-sue-project-founder-over-allegations-of-misconduct","credibility":3,"archive_timestamp":"2026-08-29T23:47:41+00:00"},{"url":"https://www.dlnews.com/articles/defi/hackers-steal-35-eth-in-azukidao-airdrop-exploit/","name":"dlnews.com","type":"other","archive_url":"http://web.archive.org/web/20260617123607/https://www.dlnews.com/articles/defi/hackers-steal-35-eth-in-azukidao-airdrop-exploit/","credibility":3,"archive_timestamp":"2026-06-17T12:36:07+00:00"},{"url":"https://www.quillaudits.com/blog/hack-analysis/azuki-dao-hack","name":"quillaudits.com","type":"other","archive_url":"http://web.archive.org/web/20260515103419/https://www.quillaudits.com/blog/hack-analysis/azuki-dao-hack","credibility":3,"archive_timestamp":"2026-05-15T10:34:19+00:00"},{"url":"https://x.com/dedaub/status/1675983033168453632","name":"x.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://www.web3isgoinggreat.com/single/azukidao-exploit","name":"web3isgoinggreat.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://cryptorank.io/news/feed/5ad75-199775-azukidao-suffers-exploit-leads-to-35-eth-loss","name":"cryptorank.io","type":"other","archive_url":"https://web.archive.org/web/20260830041844/https://cryptorank.io/news","credibility":3,"archive_timestamp":"2026-08-30T04:18:44+00:00"},{"url":"https://coinpaper.com/248/azuki-founder-admits-to-rugging-three-projects-in-a-year","name":"coinpaper.com","type":"other","archive_url":"http://web.archive.org/web/20260419105044/https://coinpaper.com/248/azuki-founder-admits-to-rugging-three-projects-in-a-year","credibility":3,"archive_timestamp":"2026-04-19T10:50:44+00:00"},{"url":"https://www.techtimes.com/articles/275285/20220511/azuki-nft-three-failed-projects-floor-price.htm","name":"techtimes.com","type":"other","archive_url":"https://web.archive.org/web/20260830010525/https://www.techtimes.com/articles/275285/20220511/azuki-nft-three-failed-projects-floor-price.htm","credibility":3,"archive_timestamp":"2026-08-30T01:05:25+00:00"},{"url":"https://nftnow.com/news/azuki-creator-in-hot-water-amidst-rug-pull-allegations/","name":"nftnow.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://beincrypto.com/azuki-nfts-creator-to-refund-investors-after-admitting-to-rug-pulls/","name":"beincrypto.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://coinmarketcap.com/currencies/azukidao/","name":"coinmarketcap.com","type":"other","archive_url":"https://web.archive.org/web/20260829125825/https://coinmarketcap.com/currencies/azukidao/","credibility":3,"archive_timestamp":"2026-08-29T12:58:25+00:00"},{"url":"https://decrypt.co/120144/azuki-twitter-account-hacked","name":"decrypt.co","type":"other","archive_url":"http://web.archive.org/web/20260412141900/https://decrypt.co/120144/azuki-twitter-account-hacked","credibility":3,"archive_timestamp":"2026-04-12T14:19:00+00:00"},{"url":"https://www.coindesk.com/web3/2023/01/27/nft-collection-azukis-twitter-account-hacked-leading-followers-to-malicious-link","name":"coindesk.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://crypto.news/two-scam-twitter-accounts-rugged-over-80-3-eth-last-month/","name":"crypto.news","type":"other","archive_url":"http://web.archive.org/web/20250905124657/https://crypto.news/two-scam-twitter-accounts-rugged-over-80-3-eth-last-month/","credibility":3,"archive_timestamp":"2025-09-05T12:46:57+00:00"}],"source_tags":["defillama"],"addresses":[],"r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