Arbitrum Security Council Freezes 30,766 ETH From KelpDAO Exploit, 9 of 12 Members Vote in Favor

Gate News message, April 21 — The Arbitrum Security Council has frozen 30,766 ETH (worth approximately $70 million) linked to the KelpDAO exploit on April 20, two days after the attack occurred. Out of 12 council members, nine voted in favor of the action. The frozen funds were moved to a secure wallet to prevent attacker access and protect user assets.

The council executed a targeted technical approach to secure only the affected funds without disrupting other chain state or users on the network. According to the announcement, the decision was made in close coordination with law enforcement, who provided information about the exploiter's identity, suspected to be DPRK-associated.

The KelpDAO exploit began on April 18, 2026, when attackers targeted a weakness in Kelp DAO's LayerZero-powered bridge, draining 116,500 rsETH (a liquid restaking token) worth an estimated $292 million. Arbitrum's action recovered approximately one-quarter of the stolen assets, marking one of the more effective responses to a major DeFi exploit.

The frozen funds will remain locked until Arbitrum governance, in coordination with relevant legal authorities, decides the next course of action. The move has sparked community debate over decentralization versus security, with some questioning whether freezing funds aligns with the core principles of decentralized systems.