Why I Left Sponge
I joined Sponge believing in equality and transparency. I left when those values were no longer upheld.
I’m Ali, one of the founding members of Sponge. I have officially stepped away from the team.
This statement is intended to clarify the background and reasons for my departure, respond to potential questions, and document the events I witnessed and took part in.
I joined Sponge in 2024. At the time, we were a focused, open early-stage team. The team culture emphasized equality — participating in hackathons, discussing product direction together, and facing challenges as a unit. There was no hierarchy; everyone’s voice mattered. That “build together” spirit was what made me invest my time and energy into the team.
However, over time, some of the team’s decision-making structures and foundations of trust changed significantly — particularly in areas of personnel decisions and financial management — moving further and further away from what I believed a healthy organization should look like.
In January 2025, we traveled abroad to collaborate with ecosystem partners. Before the trip, Echo met us briefly, and Jerry mentioned he was considering inviting her to join the team. Most of the founding members expressed hesitation at the time, as there had been no working relationship or proven collaboration to justify the move. Shortly after, Jerry and Echo entered a personal relationship.
Later that month, during another overseas trip, Jerry spent most of his time with Echo, and as a result, his interaction with the rest of the team dropped significantly. This shift impacted our ability to collaborate and achieve the original goals of the trip.
In February, we were accepted into an accelerator program — a significant milestone for the team. Echo had not officially joined at that point but was already working on BD tasks at Jerry’s direction. Based on Jerry’s actions and tone, I inferred that she intended to join the team. However, Echo never communicated her intent or plan with me or most team members directly.
It’s important to note that some members of the team had never even met or spoken with Echo — not even through online meetings or chats. Despite that, the question of bringing her into the core team was put on the table. To me, this was a clear procedural and structural problem, and it raised doubts about the integrity of the decision-making process.
I maintained reservations throughout — not out of personal dislike, but based on several observations:
First, Echo had not shown consistent, productive collaboration with the team.
Second, Jerry’s behavior changed notably after the relationship began — communication and decision-making blurred between personal and professional contexts.
Third, I had real concerns about how a personal relationship, if it were to end, might impact long-term team trust and stability.
Based on these reasons, I could not support Echo being appointed to a core position.
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Eventually, Jerry proposed that Echo be made Head of Partnerships. While most of the team initially disagreed, the decision was pushed through with Jerry’s insistence. This led to Canfly, one of the original members, leaving the team and reclaiming her rightful share of funds.
What ultimately drove my decision to leave was a breakdown in financial trust.
Sponge’s funds — including grants and hackathon prizes — had long been held in a cold wallet controlled solely by Jerry, with no multisig or transparent oversight. During earlier team trips, expenses were covered by team funds only after prior agreement. But after one particular trip, the team’s funds rapidly declined, with no clarity on where the money had gone.
At 11 p.m. on April 15, 2025, we held a team meeting and confirmed that the remaining funds — after deducting company setup costs — would be distributed equally among the core members. However, earlier that same day, around 6 p.m., Jerry transferred 1,882 USDC from the team treasury to cover personal travel expenses, without notifying any other team member.
Later, while assisting in reviewing the financial records, I discovered that the actual total amount withdrawn exceeded $5,000. None of these transactions had been disclosed or approved beforehand. Jerry claimed that a portion of the fund deficit was caused by technical errors and would be refunded, but as of now, the team has not received any clear explanation or confirmation of reimbursement.
This issue came to light when we were preparing to pay the first installment to a vendor. When Joe asked Jerry about the available funds, Jerry gave vague responses at first, then eventually admitted that the team funds were nearly depleted. I was present for the entire exchange — and it was clear to me that the foundation of trust had collapsed.
Joe immediately requested that the remaining funds be transferred to a multisig wallet and canceled the vendor collaboration. For me, that was the moment I realized I could no longer continue in a team where trust and structure had been compromised.
Before stepping away, we asked Jerry to return the hackathon prize amounts owed to team members and provided a clear breakdown of the numbers. Although he acknowledged this verbally during a meeting, no repayment timeline or follow-up has ever been offered.
Sponge was once a team I deeply believed in. I’m thankful for the journey and those who genuinely contributed along the way. I still believe many members care about building in Web3 with integrity. But when structure breaks down, power consolidates, and trust erodes, leaving is the least I can do to stay true to my values.
I’ll continue working in the blockchain space alongside people who value transparency and shared ownership. I also hope Sponge, in time, can return to the culture it once stood for.
— Ali
May 14, 2025
