# Layer2DAO response to allegations from Velodrome \[November 2022\] **URL:** \ **Category:** Accountability 🗂️\ **Created:** [March 21, 2023, 4:11pm UTC](https://gov.optimism.io/t/layer2dao-response-to-allegations-from-velodrome-november-2022/5705 "2023-03-21T16:11:21Z")\ **Posts on this page:** 1\ **Showing post:** 2
**Author:** ![jackanorak](https://dub1.discourse-cdn.com/bc41dd/user_avatar/gov.optimism.io/jackanorak/32/1633_2.png) [@jackanorak](https://gov.optimism.io/u/jackanorak)\ **Post date:** [March 21, 2023, 9:08pm UTC](https://gov.optimism.io/t/layer2dao-response-to-allegations-from-velodrome-november-2022/5705/2 "2023-03-21T21:08:32Z")
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)](https://debank.com/profile/0xfd0bd19e849493f77d8f77ed026520c1368102bd/) [L2DAO recipient of grant funds (Grantee)](https://optimistic.etherscan.io/token/0x4200000000000000000000000000000000000042?a=0xaf5a0068f5465260a1a88a6264d0dce4469609cf) [L2DAO Arbitrum treasury (Treasury): where 50mm L2DAO resided on OP](https://arbiscan.io/address/0x5318f07a3a20a2f8bb0ddf14f1dd58c517a76508#tokentxns) [L2StateofMind NFT deployer (SoM)](https://optimistic.etherscan.io/token/0x4200000000000000000000000000000000000042?a=0x66deb6cc4d65dc9cb02875dc5e8751d71fa5d50e) [Initial recipient of L2StateofMind funds](https://debank.com/profile/0x79ff559431891cfa36fa1e7589c845f2b8831201/history) ## Events around bridging ### Aug-17-2022 04:45:00 PM +UTC [Optimism transfers large number of OP to EOAs](https://optimistic.etherscan.io/tx/0x0e969b278fbc1d27953582aa183c7ed7c5532f313602f92c5e10fcab831cff75); the ‘alarming exploit’ ### Aug-17-2022 08:29:00 PM +UTC Weston Nelson asks in OP discord: ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/d/d4666f34faeda546dda12c3377c6972bd2733b83.png) Discord message ID: 1009559717816832090 ### Aug-17-2022 08:45:00 PM +UTC Diligit responds not personally having info ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/f/f9528d9f30bdeff3413686ddf4d680e508894dc9.png) Discord message ID: 1009567227944652942 ### Aug-17-2022 08:53:00 PM +UTC Weston specifies the transfer in question ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/9/99bdd80f5ac5305ef28093b71b34fef0567bb07e.png) ### Aug-17-2022 08:59:00 PM +UTC Diligit says these are Foundation accounts ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/9/943e72275d31866381e4b22d07831030290597f1.png) ### Aug-17-2022 09:14:00 PM +UTC Weston gets into miscommunication with Diligit, says transaction is ‘not a good look’ ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/5/5cc3f5c2f2deb44b98ed15ec70117f41d93938e8.png) ### Aug-17-2022 09:18:00 PM +UTC Diligit explains that there’d previously been test transfers to these accounts, confirming transaction was intended. ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/8/8b5391b78d155e5b265f924959189ab8f035fc43.png) ### Aug-17-2022 09:26:55 PM +UTC [Grantee wallet transfers 280,957 OP to Deployer](https://optimistic.etherscan.io/tx/0xdd9a560ef568cc676692737c25d799fb5c0faa1f1f96651c8c1c6bcb54f9a9b2) ### Aug-17-2022 09:30:11 PM +UTC 50k OP swapped to 35.69 ETH > **[OP Mainnet Transaction Hash: 0x38288eede2... | OP Mainnet Etherscan](https://optimistic.etherscan.io/tx/0x38288eede223d809d92e3287c5057bd11a32ab6f9248c78c6e1ede10b3a664c7)** > > Swap 80,000 OP for 11.48 ETH on 1inch | Success | Aug-17-2022 09:34:11 PM (UTC) ### Aug-17-2022 09:32:00 PM +UTC [Optimism Foundation tweets clarification of transaction as routine](https://twitter.com/optimismFND/status/1560016750648823808?t=vXOpzqrtDNhbLily9H_aWg&s=19) ### Aug-17-2022 09:34:11 PM +UTC 80k OP swapped to 57.52 ETH > **[OP Mainnet Transaction Hash: 0x38288eede2... | OP Mainnet Etherscan](https://optimistic.etherscan.io/tx/0x38288eede223d809d92e3287c5057bd11a32ab6f9248c78c6e1ede10b3a664c7)** > > Swap 80,000 OP for 11.48 ETH on 1inch | Success | Aug-17-2022 09:34:11 PM (UTC) ### Aug-17-2022 09:37:27 PM +UTC 80k OP swapped to 57.64 ETH > **[OP Mainnet Transaction Hash: 0xb5f3e3148b... | OP Mainnet Etherscan](https://optimistic.etherscan.io/tx/0xb5f3e3148bf4a21c3accc008edb9beb84aa3b61739058fa64291e075bc009a58)** > > Swap 80,000 OP for 5.76 ETH on 1inch | Success | Aug-17-2022 09:37:27 PM (UTC) ### Aug-17-2022 09:38:27 PM +UTC 70,957 OP swapped to 51.31 ETH > **[OP Mainnet Transaction Hash: 0x887e9d90a8... | OP Mainnet Etherscan](https://optimistic.etherscan.io/tx/0x887e9d90a8e8f40f6ce60055486b6d03b2a7c0ab0a1db6bb504ab60013091795)** > > Swap 70,957.43 OP for 5.12 ETH on 1inch | Success | Aug-17-2022 09:38:27 PM (UTC) ### Aug-17-2022 09:39:00 PM +UTC ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/b/ba8de57dfc048c7928839bdf44ec6066a77efbb6.png) > ### Aug-17-2022 09:46:26 PM +UTC Test bridge of 1e to same address on Arbitrum > **[OP Mainnet Transaction Hash: 0x5983603d10... | OP Mainnet Etherscan](https://optimistic.etherscan.io/tx/0x5983603d107aa4ed480b7b682c96199b4ffac3dbe1bb5b4bec47c543e6f5c9b7)** > > Call Outbound Transfer To Function By Layer2DAO: Deployer on Socket: Registry | Success | Aug-17-2022 09:46:26 PM (UTC) ### Aug-17-2022 09:51:00 PM +UTC ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/4/4334fe0c9ed2b0a4c2588a2e01f882a69a8445fa.png) ### Aug-17-2022 09:53:34 PM +UTC [202 ETH bridged from Deployer to Arbitrum via Socket Protocol](https://optimistic.etherscan.io/tx/0x8df594baba5d20e4dc23a6adc1a9d4cfa3c6aa4c15e8098d26c6a7b9e3c1cbc7) ### Aug-17-2022 10:07:19 PM +UTC On Arbitrum: Deployer sends 100 ETH to Treasury > **[Arbitrum One Transaction Hash: 0xd420850b9e... | Arbitrum One](https://arbiscan.io/tx/0xd420850b9e41fa6f4affbeca957d42d93789a9d811e6f4d17d74dfbbe82f3b3e)** > > Transfer 100 ETH to Layer2DAO: Treasury | Success | Aug-17-2022 10:07:19 PM (UTC) ### Aug-17-2022 10:07:53 PM +UTC Deployer sends 102 ETH to Treasury > **[Arbitrum One Transaction Hash: 0x0877f1ab46... | Arbitrum One](https://arbiscan.io/tx/0x0877f1ab4654b247e90d51652a96b085226bb155191e63bc472105131351a0b8)** > > Transfer 102 ETH to Layer2DAO: Treasury | Success | Aug-17-2022 10:07:53 PM (UTC) ### Aug-18-2022 00:41:00 AM +UTC Weston bullish $ETH ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/3/31ec1b865a3c28ab3d2c346c6f69b19fe7f83d3f.png) ### Aug-18-2022 Weston shilling Arbitrum ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/3/312d12a2b03b1cc289a008633d98ae019e87affd.png) ### Aug-18-2022 05:26:00 AM +UTC Weston shilling Arbitrum ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/7/79c6e1f17894b60b1c7b73496f41dbdf41fb883e.png) ### Aug-18-2022 08:57:00 AM +UTC Weston re-amplifies Aug-17-2022 09:39:00 PM +UTC tweet with the following: ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/5/562b06c4a5de5aab3a7b9a303f948ba930ec5d36.png) > ### Aug-18-2022 10:34:00 AM +UTC Weston bullish $ETH ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/b/b1dd2019e6b44c0e0b4bc1c2e30375e1119f63c1.png) > ### Aug-18-2022 10:43 AM +UTC Weston shilling $ETH ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/2/28798bd6f2b4dfffa62b48158cbc2f4b46fa97e4.png) > ### 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.” ![](https://europe1.discourse-cdn.com/bc41dd/original/2X/e/ef65ad5bef712072ed2d5fd90b8653feacde1298.png) Starts sending OP back to other one --- _[View the full topic](https://gov.optimism.io/t/layer2dao-response-to-allegations-from-velodrome-november-2022/5705)._