Edit: There is as attempt to suppress this post by the NFTEarth Team. I am updating it as it provides extensive documentation relevant to the proposal and allocation of grant funds.
There is extensive documentation around Weston’s misdeeds as part of L2DAO, LFGrow, and NFTEarth. Detailing it all below and adding additional evidence based on my own onchain research.
Summary
Background and History
- L2DAO and Weston were caught dumping and bridging OP grant funds to Arbitrum and misrepresenting the circumstances to governance to avoid accountability
- L2DAO and Weston were caught granting themselves and dumping additional OP funds through NFTEarth and LFGrow multisigs they controlled, funneling funds to team addresses
- L2DAO and Weston failed to disclose its loss 10% of total L2DAO token supply until those tokens were accessed and dumped under suspicious circumstances
New Developments
- LFGrow rugged, making it reasonable to believe it may have merely been a funnel for OP grant funds to team wallets and that Weston Nelson mislead OP delegates, no disclosure has been made
- Weston may have misappropriated team NFTE tokens by engaging in an unauthorized and undisclosed private sale to Millennium Club DAO members
- NFTEarth Team connected wallets have used team NFTE tokens [to single side deposit in LPs to dilute price and drain community LPs] (NFTEarth Massive Circulating Supply Dilution Without Governance - 🔍Monitoring - Optimism Collective)
- NFTEarth team safe wallets have been spotted dumping team tokens on the market and engaging is manipulative LP strategies
Recent 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 appear to manipulate DAO voting, redirect OP voting rewards to personal wallets, are sold to fund a sybil network designed to earn NFTE airdrops and engage in suspicious NFTE trading
- Admin mints reveal potential Weston alt accounts like 0xAdvetuer and RingoRollup used to imply to the L2DAO community that Weston the was not the sole proposer of grants to LFGrow and NFTEarth
Keyplayer
- 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.
Recent Finding Details
L2STATEOFMIND AdminMint Used to Dilute Holders, Sybil Airdrop, Funnel Rewards to Team, Washtrade
- L2STATEOFMIND NFTs were extensively promoted as NFTs designed to allow L2DAO members to vote on which projects got OP grant funds, received OP airdrops for each voting cycle, and that wouldallow holders to earn double revenue share from the protocol.
- L2DAO Team multisig minted $25,000 worth (~12% of total supply) L2STATEOFMIND NFTs to L2DAO/NFTEarth/LFGrow Team and Weston linked addresses over a series of months.
- A portion of these were minted to newly created EOA wallets linked through the flow of funds to his addresses and a Coinbase deposit address used by him to L2DAO/NFTEarth/LFGrow team member Weston Nelson in small batches, seemingly to avoid detection.
- These wallets were then used as part of a sybil network apparently designed to vote OP grants for his projects, siphon off Optimism Grant voting rewards to personal wallets, and potentially sybil his own NFTEarth airdrop.
- Once the voting rewards program and airdrop were complete, a NFTEarth trading contest was launched allowing many of these NFTs to be dumped juicing the marketplace stats and giving the sybil network more funds to engage in manipulative NFTEarth trading.
- Another portion of these (~100) were minted directly to a NFTEarth multisig before days later being returned to the L2DAO multisig demonstrating the L2DAO team was aware and issued no disclosure of the events
- This could suggest that Weston minted these 100 NFTs without team permission, something reinforced by the comments to Exosphere, resulting in an ongoing cover up by the team. One they maintain even after being publicly informed of the abuse.
FEW22 AdminMint Used to Dilute Holders, Sybil Airdrop, Funnel Rewards to Team, Washtrade
- FEW22 NFTs were extensively promoted, sold with a promise of giving holders “additional utility” on NFTEarth that has never actually been delivered
- Team minted $65,000 worth of FEW22 NFTs (~43% of the complete collection) to team addresses and Weston linked wallets, even as team continued to promote the mint
- Following a similar pattern as with the L2STATEOFMIND NFTs, some were minted to newly created EOA wallets linked to Weston and some directly to NFTEarth controlled multisigs
- Many of the same addresses received both the L2STATEOFMIND NFT as well as the FEW22 NFTs and engaged in the same wash trade and Sybil activities.
EARTHLINGS NFT Dilution
- EARTHLINGS are an NFT collection introduced by NFTEarth with the promise of the ability to stake the NFTs to earn protocol revenue and NFTE token rewards
- NFTEarth team has minted at least 400 EARTHLINGS to its team multisig without disclosing this to its community
- Based on previous behavior with L2STATEOFMIND and FEW22, seems like other mints need to reviewed for potential fraudulent or sybil mints
The minting of these NFTs to team addresses reveals a sophisticated interconnected sybil network that connects directly to a Weston used Coinbase deposit address.
