Dough Finance
Summary
Dough Finance was an Ethereum-based DeFi lending and margin-trading protocol co-founded by Chase Herro and Zachary Folkman. On July 12, 2024, the protocol was exploited via a flash loan attack that drained approximately $2.1–2.5 million in user funds due to unvalidated calldata in its ConnectorDeleverageParaswap smart contract. The protocol's website is shut down, the vast majority of the approximately 2,700 affected users have received no meaningful compensation, and the co-founders have since launched World Liberty Financial alongside Donald Trump, earning an alleged $65 million in revenues from that new venture.
Connected Entities
1 entities- + 1 more
Timeline(13 events)
2024-05-01
Jonathan Lopez invests approximately $1 million in Dough Finance, allegedly guided by Chase Herro to use leveraged looping strategies and paying a 5% fee.
2024-07-12
Flash loan exploit drains approximately $1.8–2.5 million from Dough Finance's ConnectorDeleverageParaswap contracts due to missing calldata validation. Attacker funded via Railgun.
2024-07-12
Dough Finance acknowledges exploit, urges users to withdraw funds, and posts on-chain message demanding return of stolen assets by July 15, 2024.
2024-07-13
Approximately 600 ETH of stolen funds deposited into Tornado Cash by the attacker. White-hat wallet returns 69.12 ETH; MEV bot c0ffeebabe.eth returns 7.05 ETH.
2024-07-15
Dough Finance's ultimatum deadline to the attacker passes with no compliance. Founders announce intent to pursue criminal, legal, and administrative remedies.
2024-08-01
Dough Finance announces compensation plan: proprietary DOUGH tokens convertible to ETH for affected users. Approximately $180,000 of recovered $281,000 distributed to select addresses.
2024-08-15
Co-founders Herro and Folkman cease communication on official Dough Finance channels.
2024-09-01
Chase Herro and Zachary Folkman launch World Liberty Financial (WLFI) alongside Donald Trump, his sons, and the Witkoff family.
2024-09-01
Governance vote on Dough Finance reimbursement passes with 99.5% approval; no meaningful additional compensation follows.
2024-12-01
Dough Finance website goes offline. Protocol effectively abandoned.
2025-05-01
Jonathan Lopez files civil lawsuit against Chase Herro in Florida, alleging fraud, misrepresentation, breach of financial duties, and securities law violations over the $2.5M hack and unkept reimbursement promises.
2025-05-20
Multiple news outlets (CryptoTimes, CoinAlertNews, Malay Mail) report on Dough Finance investors remaining uncompensated while Herro and Folkman have earned an alleged $65 million from WLFI.
2026-04-01
Trial in Lopez v. Herro scheduled; outcome pending as of research date.
Decision Log
- hash: HUk7eWZ98SYgdtG9ic9MmsLqanP1MBMZcvp8ZywyhYUj
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:31 AM
last updated: 5/28/2026, 3:44:13 AM
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