Summary

Background and History

1. L2DAO and Weston were caught dumping and bridging OP grant funds to Arbitrum and misrepresenting the circumstances to governance to avoid accountability
2. L2DAO and Weston were caught granting themselves and dumping additional OP funds through NFTEarth and LFGrow multisigs they controlled, funneling funds to team addresses
3. L2DAO and Weston failed to disclose its loss 10% of total L2DAO token supply until those tokens were accessed and dumped under suspicious circumstances

Updates and Follow-Up

• LFGrow has now rugged, potentially validating it was merely a funnel for OP grant funds to team wallets and that Weston Nelson lied to OP delegates, no disclosure has been made
• Weston Nelson appears to have misappropriated team NFTE tokens by engaging in an undisclosed private sale to Millennium Club DAO members
• NFTEarth connected wallets have used team NFTE tokens to single side deposit in LPs to dilute price and allow community LPs to be effectively drained
• NFTEarth team safe wallets have been spotted dumping team tokens on the market and engaging is manipulative LP strategies

New Findings

• L2DAO and NFTEarth teams have promoted and sold utility NFTs while undisclosed using admin mint functions to mint themselves hundreds of NFTs
• These NFTs were then used to manipulate DAO voting, redirect OP voting rewards to personal wallets, sold to fund a sybil network designed to earn NFTE airdrops and engage in suspicious NFTE trading
• Admin mints to 0xAdvetuer and RingoRollup suggest they may have been Weston alts designed to deceive L2DAO community into thinking he was not the sole proposer of grants to LFGrow and NFTEarth

Keyplayers

• Weston Nelson: Team/multisig member of LFGrow and NFTEarth, former team member of L2DAO that was removed after initial allegations were made. His doxxed wallet was responsible for initiating almost every transaction detailed below and his likely secondary multisig wallet is often used as a second signer.