Layer2DAO response to allegations from Velodrome [November 2022]

Here’s a tick-tock describing the moments leading up to the sale of the OP that in my opinion undercuts this claim. L2DAO had gotten proof that OP had not been compromised and went ahead anyway with selling the OP and bridging the funds. This action had not been disclosed until I’d uncovered it months later.

These facts raise questions about their motivations. Their pretext was a token hack - so why bridge and start immediately shilling ETH and Arbitrum?

And why do it after weeks of LPing the token, which itself seems inconsistent with the spirit of these grants?

And why not immediately bridge back, instead keeping the funds on Arbitrum?

And why not tell anyone?

See below:

Wallets of interest

L2DAO deployer on Optimism (Deployer)

L2DAO recipient of grant funds (Grantee)

L2DAO Arbitrum treasury (Treasury): where 50mm L2DAO resided on OP

L2StateofMind NFT deployer (SoM)

Initial recipient of L2StateofMind funds

Events around bridging

Aug-17-2022 04:45:00 PM +UTC

Optimism transfers large number of OP to EOAs; the ‘alarming exploit’

Aug-17-2022 08:29:00 PM +UTC

Weston Nelson asks in OP discord:

Discord message ID: 1009559717816832090

Aug-17-2022 08:45:00 PM +UTC

Diligit responds not personally having info

Discord message ID: 1009567227944652942

Aug-17-2022 08:53:00 PM +UTC

Weston specifies the transfer in question

Aug-17-2022 08:59:00 PM +UTC

Diligit says these are Foundation accounts

Aug-17-2022 09:14:00 PM +UTC

Weston gets into miscommunication with Diligit, says transaction is ‘not a good look’

Aug-17-2022 09:18:00 PM +UTC

Diligit explains that there’d previously been test transfers to these accounts, confirming transaction was intended.

Aug-17-2022 09:26:55 PM +UTC

Grantee wallet transfers 280,957 OP to Deployer

Aug-17-2022 09:30:11 PM +UTC

50k OP swapped to 35.69 ETH

Aug-17-2022 09:32:00 PM +UTC

Optimism Foundation tweets clarification of transaction as routine

Aug-17-2022 09:34:11 PM +UTC

80k OP swapped to 57.52 ETH

Aug-17-2022 09:37:27 PM +UTC

80k OP swapped to 57.64 ETH

Aug-17-2022 09:38:27 PM +UTC

70,957 OP swapped to 51.31 ETH

Aug-17-2022 09:39:00 PM +UTC

Aug-17-2022 09:46:26 PM +UTC

Test bridge of 1e to same address on Arbitrum

Aug-17-2022 09:51:00 PM +UTC

Aug-17-2022 09:53:34 PM +UTC

202 ETH bridged from Deployer to Arbitrum via Socket Protocol

Aug-17-2022 10:07:19 PM +UTC

On Arbitrum: Deployer sends 100 ETH to Treasury

Aug-17-2022 10:07:53 PM +UTC

Deployer sends 102 ETH to Treasury

Aug-18-2022 00:41:00 AM +UTC

Weston bullish $ETH


Weston shilling Arbitrum

Aug-18-2022 05:26:00 AM +UTC

Weston shilling Arbitrum

Aug-18-2022 08:57:00 AM +UTC

Weston re-amplifies Aug-17-2022 09:39:00 PM +UTC tweet with the following:

Aug-18-2022 10:34:00 AM +UTC

Weston bullish $ETH

Aug-18-2022 10:43 AM +UTC

Weston shilling $ETH

Aug-18-2022 05:28:00 PM +UTC

Weston claiming to have “followed up with other parties” regarding how previous day’s tx was handled. Still asking for “just info.”

Starts sending OP back to other one