Red Flags in DAO Treasury Transactions
The DAO treasury red flags compliance teams look for.
The list
- Treasury/multisig includes a designated wallet
- Inflows from mixer-funded addresses
- Rapid pass-through of grants to a single wallet
- Governance votes approving payments to designated-adjacent addresses
- Fresh treasury with large first inflows
- Jurisdiction exposure in treasury counterparties
Why DAO flows get flagged
DAO treasuries are on-chain and transparent - the same transparency that makes them auditable makes their patterns visible. The EtherDelta precedent put DeFi shapes on notice.
The control
Screen every treasury transaction (outflows AND inflows), flag the patterns above, fail closed, and log with list versions.