- Arbitrum froze $71 million in ETH tied to a recent exploit
- Funds linked to the $292 million Kelp DAO hack
- Assets moved to a frozen wallet
- Further action requires governance approval
Emergency Action Taken After Major Exploit
The Arbitrum Security Council has frozen over $71 million in ETH connected to the recent Kelp DAO exploit.
The funds were moved to a controlled wallet to prevent further movement.
Governance Will Decide Next Steps
The frozen assets cannot be moved unless approved through Arbitrum’s governance process.
The team stated that the action was taken with input from law enforcement and did not affect other users or applications.
Background on the Exploit
The attack involved Kelp DAO and resulted in losses of around $292 million.
Initial reports suggest the exploit may be linked to the Lazarus Group, a well-known hacking organization.
Debate Over Security Design
The incident has sparked discussion about system design choices, particularly around verification setups used in cross-chain messaging.
It highlights ongoing challenges in securing DeFi infrastructure.
