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on April 18, 2026, Lazarus Group withdrew ~ $290M from Kelp DAO in rsETH.
a few days later, Arbitrum’s Security Council voted 9:3 and froze 30,766 ETH (~$71M), moving it to a governance-controlled wallet.
crypto celebrated - I get why. no one wants stolen funds funding missile programs.
but it also highlights something uncomfortable.
Arbitrum did what DeFi was originally supposed to prevent: a small group effectively overrode ownership and moved funds without private keys.
“code is law” was the original promise. on April 20, that line got blurred - your funds are yours until governance decides otherwise.
today it was Lazarus. tomorrow, it’s precedent.
not against the decision. I’m against pretending nothing changed.
because it did.