The Arbitrum Security Council froze 30,766 ether held by the KelpDAO exploiter on Arbitrum One, moving the funds to a protocol-controlled address before they could be bridged back to the Ethereum mainnet.
Key Takeaways:
Arbitrum’s Security Council froze 30,766 ETH worth roughly 70 million from the KelpDAO exploiter on April 21. Peckshield flagged the exploiter had initiated a native bridge withdrawal before the Security Council acted. The 30,766 ether now sits in a protocol-controlled address; its final disposition has not been announced. Arbitrum Acts Fast as KelpDAO Exploiter Attempts to Bridge Stolen FundsThe KelpDAO exploit drained approximately 292 million from the protocol via a Layerzero bridge attack targeting rsETH, with a portion of the stolen funds being moved to Arbitrum One after the initial breach.
How the Arbitrum Security Council Stopped the ExploiterHowever, this ability to unilaterally move funds has drawn some flak within the Ethereum community, primarily over centralization concerns for a network positioned as a decentralized layer-2.
