Layer2DAO response to allegations from Velodrome / OptiChads [March 2023]

I see some more suspicious activity happening at this very moment from another wallet that was seeded by this one…

Which was also seeded by L2DAO 0xaf5a0068f5465260a1a88a6264d0dce4469609cf

NFT earth - 0x5a711a7aae4a270c05fb9d67544ddcd2694bdc2c sent funds to this wallet which has a lot of transactions … 0xd8B73d634bd6F6D7d1e992551Ab7E06e4c21B171

Suspicious activity HERE
https://optimistic.etherscan.io/address/0xd8b73d634bd6f6d7d1e992551ab7e06e4c21b171#tokentxns

Can someone please confirm this activity on chain and the original source of the funds that came from Optimism foundation ???

New Wallet
0xFC1f3296458F9b2a27a0B91dd7681C4020E09D05

Now I am seeing this wallet with hight amounts of activity leading back to the NFT earth vault that received funds from the L2DAO. @Dicaso can you help to confirm some of this…

New Wallet
0x9581c5df8ea9a0aa84e52f40a378d7339bedccc3
Wallet that received funds from NFTE vault… :arrow_down:

Here you see 5000 OP that was transferred from NFTE :arrow_down:

NFTE Wallet
0x5a711a7aae4a270c05fb9d67544ddcd2694bdc2c
Here is the NFTE wallet that sent those funds. :arrow_down:

Similar to the other wallet you will see this one lead back to the Optimism Foundation with the initial transaction that seeded the wallet from the L2Dao.

L2DAO Wallet
0xaf5a0068f5465260a1a88a6264d0dce4469609cf

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I would love to see the team refute any of these transactions. (still no response?) There were movements from confirmed team wallets yesterday of NFTE/L2DAO tokens around the same time as the wild volatility that occured. (on both Optimism and Arbitrum)

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This is baseless and off topic. Dictum scammed a lot of people and protocols on Arbitrum. They had “partnered” with almost every large protocol on Arbitrum. Anyone doing the slightest bit of actual research could find this information.

The reason there is a “guide” on L2dao discord is because I personally spent several days helping members within L2dao and the larger Arbitrum community get their funds back. We actually helped a lot of people get their funds back after dictum couldn’t even rug properly.

I’m all for this process but we need to stay on topic and you’re still reframing events to fit your timeline.

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you should give account fractal vision of the sales of your nft to the community, go for your suspension and lets rest.

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I am not making any accusations. I am just asking questions. Given that the flagged wallet is known to be a multisig signer on 2 safes that embezzled 55,000 $OP, I think it is a fair question to ask:

What exactly was your relationship with Dictum? Were these transfers made before, or after the Dictum hack, and why?

I don’t see why it couldn’t be another embezzlement if I already found 2 instances with the same wallet. It’s actually getting fun to look for them at this point.

This sort of speculation that comes from asking honest questions is why we need an independent investigation NOW. I think it will do the optimism community a disservice if we would have to wait months for a conclusion. You will just encourage people like me to keep posting about it everyday.

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Correction: * 3 instances of embezzelement so far. I almost forgot about this one:

lol!

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I have a more in depth analysis on the way …

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I can attest to this! acidhoe helped me get my funds back! many many projects were fooled by dictum. this personal attack on weston is vicious and unsupported.

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How ironic… I was personally attacked by the member you speak of in the L2DAO for voicing my concerns about the funds being used for ill intentions…

I see a ton of new activity today meaning while the team is silent here they are probably panicking trying to hide :face_in_clouds: money and move it into new accounts.

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Here is a link to my live document of what I have seen so far.
I will continue to update this as I go.

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Weston has not once even commented in this forum about any of these allegations. Yet he is targetting and doxing the locations of people in the Optimism community. I myself am now facing a lawsuit for speaking the truth. If @FractalVisions was given harsh repricutions for an alleged similar incident I don’t see why Weston is able to dox the location of a member from the Velodrome team and this is somehow acceptable. What is the point of governance if he just ignores every forum post and takes legal action against people who happen to find evidence of on-chain fraud?

I urge every project in the Optimism collective that cares about transparency, and on-chain evidence to denounce Layer2"dao" and cut all ties. They can sue a few of us, but not all of us.

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I just updated this post to include additional detail by Train, co-founder of Layer2DAO. This also includes all transaction history for the OPIncubator program.

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Nice it will take a lot of work to look at these but I just opened the NFTE wallet and found the same fraud that has been pointed out multiple times in these forums. We know on chain that 55,000 OP has been embezzled already. I am wondering why the “team” you “allocated” these funds to with your 2/5 multisig market dumped, transferred the funds into new wallets and purchased NFTs from their own exchange, $NFTE, other altcoins, and performed day trades. Are these the sort of transactions that your “dao” allocated the funds for?

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I find it strange that my posts that have been up for hours are only flagged after the the L2DAO team shows up. This is clearly an attempt by the team to manipulate information. Optimism governance should be a censorship free zone.

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Will go through the information provided at top, but top of mind: can you describe what LF Grow Hub is, and what projects did it distribute to? Can you describe the nature of this program and how it aligns with the original grant?

Also, please update the transaction in this row, as it links to a november transaction:

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Proof one of the founders @0xWeston has washtraded his own exchange.



Screenshots are a week old. But you can verify for yourself. I hope these visual representations are easier to comprehend than just links to etherscan. The same wallet voted on every tx to sell and transfer the 55,000 OP that was embezzled (SO FAR???)

Can the team please comment on how this is a good use of a founders resources, especially given he has voted on all of the 2/5 multisigs that have embezzled funds?

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I would like to make a note that around 12:00 :clock12: AM MST my phone began to ring with notifications due to a coordinated attack from the layer 2 Dao on our social media account and the other posts here in the forum.

https://twitter.com/thelayer2dao/status/1638773846236090368?s=46&t=_8dkepIOA6H5XhasVM4F9g

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The investigation continues …

Next we are taking a look at other wallets where the grant funds have been sent from NFTE after receiving 27,500 OP.

It appears that 5000 OP were sent to the wallet ending in 0595

Here is the transaction.

Then the 5000 OP is sent to 2 different wallets in amounts of 1000 OP from wallet 0595

Wallet 9d05 received 4000 OP tokens

Wallet 1d36 received 1000 OP tokens
https://optimistic.etherscan.io/address/0x1c3140ab59d6caf9fa7459c6f83d4b52ba881d36

Now I also see another transaction for 1000 OP coming into this wallet from an address ending in 4fb4

When I check my posts above it appears that this new wallet ending in 4fb4 is the same wallet that @0xWeston had sent me money from for the commission payment of some artwork.

This same wallet was seeded by 09cf with 27,500 OP which is the L2DAO wallet that we originally started with… Meaning that now 2 separate wallets that received grants from L2DAO both appear to be in the possession of Weston and the NFT earth team.

Totaling an amount of 55,000 OP tokens that now appear to have some suspicious on chain activity after receiving the grant funds.

Here is a screenshot of the 1000 OP sent from 4fb4 to 0595

Here you see the 1000 OP tokens being received by wallet 0595

Of course here is a screenshot of the 4fb4 wallet receiving 27,500 OP in grant funds from the L2DAO that now has a connection with this new wallet.

As you can see from my live document we are starting to decipher where the funds have been sent so far and how it has grown in todays exploration on chain. This is an interactive display and all relevant links are live on the web of transactions being traced so anyone can easily see and understand where the OP has gone.

I will continue to update this live document so anyone can explore the same transactions that are discussed here in this thread. This will take a bit of time but I want to make sure that all transfers are being recorded and updated correctly as time moves forward.

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Next Tx coming from the NFT earth address ending in dc2c is for 2,500 OP tokens heading to a new address ending in daff which appears to lead to a uniswap smart contract.

A link to the transaction.

The 2,500 OP then get rerouted from daff to address 1849

When looking at the contract of the 1849 address the smart contract states that it is a " UniswapV3Pool "

This has been added to the live document as well to better understand where the OP has been sent on chain and help provide clarity on the complex network of transactions that we are observing with each address.

We will continue to explore each address or transactions in relation to the use of the grant funds that were given to L2DAO and help break this down in a visual aspect with further developments over the next few days.

EDIT :writing_hand:

After confirmation with Uniswap support this is what was determined.

So far I found 10k tx that goes to a interesting pair VolatileV1 AMM - OP/L2DAO (vAMM-OP/L...)

Another 17+k to another pair same name.

It looks like it keeps going to the 0xaf5a0068f5465260a1a88a6264d0dce4469609cf which is a safe wallet contract sending and creating these.

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