Layer 2 Blockchains use Multisig Wallets, short for "multiple signature", to perform actions to their Blockchain. These actions include anything from moving Treasury funds, to making upgrades to the blockchain, to anything else imaginable. Multiple signatures are required as a security measure to make sure that one rogue employee doesn't drain the Company Treasury, or delete code or steal user funds… By having multiple wallets sign a transaction, it is supposed to mean that the preapproved amount of "core members" approve of the transaction being proposed.
BASE: 4 of 9 signatures required to perform a transaction. Below you can see that their one Dev wallet originally setup and funded 6 of their 9 multisig wallets. One person controls enough wallets to drain, delete, or do anything they want to this Blockchain.
OPTIMISM: 5 of 7 signatures required to perform a transaction. 5 of the 7 Multisig Signee wallets were setup and originally funded by the same Dev wallet. One person controls enough wallets to drain, delete, or do anything they want to this Blockchain.
BLAST: 3 of 5 signatures required to perform a transaction. All 5 of their Multisig Signee wallets were setup and originally funded by the same Dev wallet. One person controls enough wallets to drain, delete, or do anything they want to this Blockchain.
MANTLE: 6 of 13 signatures required to perform a transaction. Below you can see 6 of 13 of their Multisig wallets were setup and funded by the same wallet. In addition to this 4 more of their wallets have never had any activity at all, and could very easily also be controlled by the same Entity. One person controls enough wallets to drain, delete, or do anything they want to this Blockchain.
What is even more concerning is that BLAST, BASE, and OPTIMISM each had a connection to the same Developer that setup their Multisigs, meaning one person could drain all three.
This calls into question not only their security issues, their integrity, their centralization, but also their relationship, and lack of differentiation of tech. Are they just white label Layer 2 chains spun up to sell you a token? It sure does appear that way.
In the wake of the stETH fiasco it's time for a reckoning in the industry. What are we doing here and why? We've lost our way.
User Funds across Ethereum Layer 2 Blockchains are at MAJOR RISK, including Blast, Optimism, Mantle, and Base. These blockchains are essentially centralized databases controlled by a handful of people who control a single multisignature wallet. Be careful!
byu/gigabyteIO inCryptoCurrency
Posted by gigabyteIO
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Arb?