Arbitrum's $71M ETH freeze revives decentralization debate after KelpDAO exploit

Arbitrum’s Security Council used emergency powers to move more than 30,000 ETH, worth about $71 million, out of an attacker-linked address after the KelpDAO exploit. The action locked the funds in a wallet with no owner pending further governance decisions. Steven Goldfeder of Offchain Labs said the council first considered doing nothing before choosing a surgical intervention. The move has triggered debate over whether an elected 12-member emergency council fits Arbitrum’s decentralization model.

ARB3.16%
ETH-1.37%
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