Note: It appears someone(s) is repeatedly flagging threads to make it impossible to reply, as such I am posting this as a separate topic and will copy it directly to the relevant threads once reopened.
In an attempt to put an end to what has been a long and grueling process to bring transparency and accountability to the misuse of grant funds, here is a succinct a final summary of my understanding of the core facts based on this statements and evidence presented to date. This goal of this summary is to serve as a clear reference for those looking to understand the events to date should further requests be made of Optimism Governance for funding for L2DAO, NFTEarth, LFGrow, their team members, and active partners.
While assumptions of good faith and positive intent are critical to the ethos of the ecosystem, I think it is critical, especially in circumstances of repeated breaches of trust, that we do not allow folks to exploit these positives intentions to obfuscate potential attempts to take advantage of us and the decentralized system we are building. My hope is that now that these details have been been clarified, individuals in the ecosystem will have all the information they need to make their own evaluations, and we can shift our focus back to the the work of actually building a more honest and accountable collective.
Summary of L2DAO’s Misuse of Grant Funds:
• L2DAO dumped all OP grant funds and bridged them to Arbitrum with no public disclosure
• L2DAO misrepresented the circumstances that lead to the dumping/bridging of funds
• L2DAO used these funds to farm and generate DAO revenue on both Optimism + Arbitrum
• After being discovered, OP was re-purchased (for less) and bridged back to Optimism
• L2DAO used OP grant funds to fund two multisigs which were controlled by their team
• These multisigs dumped / distributed all OP grant funds to an interconnected set of 20+ wallets
• Beneficiaries of these distributions from NFTEarth + LFGrow were often the same addresses
• These addresses engaged in a number of suspicious and manipulative activities with NFTE
• No evidence has been provided that any independent NFTEarth DAO voted to approve distros
• No evidence has been provided that any sort of independent LFGrow DAO governance exists
• Multiple anonymous wallets on these multisigs were funded by existing team wallets
• L2DAO declines to attribute any verifiable independent identity to these multisig members
• This makes it impossible to rule out team ownership of additional “private signer” addresses
• L2DAO declines to address evidence pointing to Weston’s potential ownership of the only other address that co-signs nearly every transaction on both the identical LFGrow / NFTEarth multisigs
• L2DAO principals appear to have been fully in control of / responsible for the actions of these multisigs
• No explanation has been offered as to why supposed five figure reimbursement payments to Weston were funneled through multiple wallets before hitting his Coinbase deposit address
• No detailed accounting has been produced detailing the exact purpose and recipient of each payment and transaction
• This obfuscates who from the team benefited and in what amounts from these transactions
• This obfuscates whether or not LFGrow funds were used for NFTEarth, contrary to promises
• This obfuscates who from the team engaged in manipulative trading activities + wash trading
• L2DAO continues to make misleading statements implying that the situation was “resolved”
• Optimism clarified that their statements do “not indicate that concerns have been resolved”
For reference:
• Tick-tock and on-chain analysis of events associated with the initial dumping and bridging of Optimism Grant Funds
• On-chain analysis of second and third instances of dumping and moving of Optimism Grant Funds
• Layer 2 DAO’s statements to date on the second and third instances of dumping and bridging