Arbitrum (ARB)

Arbitrum freezing funds protects L2 users from being treated as second-class in the Kelp recovery. Kelp prioritizing mainnet over bridged assets sets a risky precedent with little upside. Freezing helps rebalance things by showing hacked L2 assets can be stopped. Bridges should add fast freeze mechanisms for hacks too to trap hackers. Yes, it’s more centralized but if you want maximum censorship resistance, use mainnet.

Arbitrum didn't wait. Facing the Kelp DAO hack, its Security Council launched emergency measures to block 30,766 $ETH stolen. In DeFi, the speed of reaction can sometimes make all the difference. https://t.co/lWtJl8wkiw

Agreed 💯😂😂

After Arbitrum transferred funds from the kelpdao exploiter address, the exploiter has started moving funds on ethereum to the btc network via Thorchain and Umbra Remember @thorchain can freeze these funds, but they likely won’t and will play the “decentralization” card Arbitrum could have done the same, but they prioritized protecting user funds, ultimately what matters more than any decentralization debate Source wallets: 0xabc82c8975c922e5aa836b4afd36fad4511a65b8 0xf9802c5eb6b972ba686afa7ca615910ea8310b85

Sir Arbitrum have just triggered there 12-N death star multisig and rugged North Korea. https://t.co/y4duMQoJ4Q

only scammers or potential scammers are angry with the arbitrum security council’s move on the kelp hacker. too much of anything is bad, and that includes absolute decentralization.

#Arbitrum Locks Exploit Funds After $292M KelpDAO Breach. Arbitrum has taken emergency action in response to the KelpDAO breach. In particular, it has frozen 30,766 ETH worth approximately $71 million. In a post on X, the Arbitrum Security Council confirmed that the decision was made following coordination with law enforcement, which had already identified a suspected exploiter. To prevent further movement of funds, the assets were transferred into a restricted intermediary wallet. This measure effectively cut off access from the original address. Before executing the freeze, the council conducted technical validations to ensure that no other users, contracts, or system states on Arbitrum were affected. Looking ahead, any future movement of the frozen assets will require governance approval, ensuring oversight and transparency in the recovery process. The action follows a major incident at KelpDAO on April 18, when attackers drained roughly $292 million, making it the largest DeFi exploit reported to date in 2026.

Wu said he learned that Curve founder Michael Egorov stated that while Arbitrum's security council's freezing of funds related to the KelpDAO incident is understandable, it may lead users to reassess its security and neutrality. He noted that if the chain has the ability to freeze assets, it is hard to deny that some traditional financial regulatory logic might apply to this network. Egorov further indicated that this mechanism means L2 is heading toward a development path different from the underlying network, and the base layer (L1) should be designed to avoid such intervention capabilities. https://t.co/ikwrqwNLuH

while we celebrate Arbitrum's $70m rescue, the guy responsible for laundering the ETH spoils on Arbitrum is likely looking at a life sentence in DPRK https://t.co/CqAmI9ABmc