OlympusDAO V2 Migration Scams

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OlympusDAO

OlympusDAO is a decentralized reserve currency. During the migration to V2, scammers took advantage of the confusion faced by at least one user to trick them out of $20k in funds. There is no indication that any funds have been recovered.

This is a global/international case not involving a specific country.

About OlympusDAO

"The Decentralized Reserve Currency. Olympus is building a community-owned decentralized financial infrastructure to bring more stability and transparency for the world."

"Olympus is a decentralized reserve currency protocol based on the OHM token. Each OHM token is backed by a basket of assets (e.g. DAI, FRAX) in the Olympus treasury, giving it an intrinsic value that it cannot fall below. Olympus also introduces unique economic and game-theoretic dynamics into the market through staking and bonding."

"OlympusDAO is an experimental project in the cryptosphere. The DAO manages a token treasury that's used to back the OHM currency. The purpose of the treasury is to make sure the token maintains a certain floor price. If the token drops below that price, the assets in the treasury can be sold to buy back OHM tokens — with the goal to bring its price back above that mark."

"The DAO uses a process for helping the token to stay above that mark called Bonding. The DAO buys assets from investors (to go into the treasury) and issues OHM tokens to replace them. These bonds usually get a 5-10% discount and the tokens are handing out after a vesting period, which is currently set to five days."

"V2 migration introduces new features such as on-chain governance and auto-staking for bonds. Transitioning from sOHM V1 to gOHM allows for multiple bonds to be taken at one time, as opposed to one bond per vesting period as it was in v1."

"Partial liquidity will remain for v1 OHM while the migration is in progress. This provides sufficient liquidity for borrowers to close or move their borrowing position."

"I mean yes you can transfer to gohm, but first of all where is the official page explaining how it works? There is so much confusion surrounding the whole migration. There are problems with the app and website, plus endless posts about not showing in wallet and restaking."

"Its not that the migration doesnt work and with research the info can be found and completed with relative ease. But if any traditional finance company with 1-2bn AUM did this without an official page on the main website, they would get completely burnt. Imagine if you are an average 40-60 year old having your savings in ohm and to migrate your money you have to rely on going to twitter or discord - forget it. Crypto and ohm especially is hard enough to understand."

"The live chat I clicked on to inquire about the V2 migration turned out to be fake and stole all my assets ($20,000) in my wallet. And these malicious hackers have victimized many Olympus investors like me. Will Olympus officials have an explanation on this issue? all these problems happened because people need support due to V2 transition."

"[A]ll our mistake was investing in Olympusdao. Please the Olympus team needs to see this situation and we are waiting for an explanation."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - OlympusDAO V2 Migration Scams

Date	Event	Description
December 17th, 2021 1:33:00 AM	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $20,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Prevention Policies

Which policies could have prevented this event from happening?