In 2021, Ardana Labs set out to introduce an innovative stablecoin platform for Cardano, securing $10 million in investments.

However, it suddenly shuttered its operations in November 2022, citing "funding and project timeline uncertainty."

Initial assumptions leaned towards the company succumbing to the challenges of the crypto winter, but recent revelations by Web3 risk-management platform Xerberus hint at a different narrative.

As per Xerberus, it appears that Ardana's executives might have transferred a substantial 80% of the project's funds to a personal wallet.

Allegedly, CEO Ryan Motovu or another high-ranking team member orchestrated these transactions, in an attempt to obscure some through centralised exchanges.

Consequently, these funds were imprudently invested, resulting in a $4 million loss, expediting the project's eventual downfall.

At the outset, Ardana successfully raised $10 million from venture capital firms CFund, Three Arrows Capital (3AC), and Ascensive Assets, generating elevated expectations around its token, DANA.

The project also unveiled a partnership with Near Protocol to forge a bridge between Cardano and Near, although neither platform nor bridge materialised, culminating in Ardana's closure.

Paper Trail

Xerberus unearthed a trail of funds movements, indicating that a significant portion of the raised funds underwent transfers through intermediaries, ultimately culminating in a "Target Wallet."

Some funds underwent a route through centralised exchanges such as Kraken, Coinbase, and Gate.io before converging on the Target Wallet.

While approximately $1.82 million was allocated for development costs, around $1.4 million in USDC remained stashed in a "Treasure Chest" account.

Conversely, the remaining balance in the Target Wallet, roughly $4 million, was squandered in poor trades, primarily through decentralised exchanges.

The behavioural patterns of Ardana's team on-chain exhibited a notable shift in March 2022, marked by a series of asset dumps onto decentralised exchanges, culminating in the official announcement of closure in November 2022.