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As of the publication date, Arbitrum governance is voting on a proposal to release 30.765 ETH (approximately $71 million) that was frozen by the Arbitrum Security Council on April 21 after the Kelp DAO exploit. The proposal, co-authored by Aave Labs, Kelp DAO, LayerZero, EtherFi, and Compound, has received 100% support from the votes, totaling 34.2 million ARB. The voting period will end next Thursday.
If approved, the funds will be transferred to a recovery address secured by Gnosis Safe under a 3-out-of-4 mechanism, with signatories including Aave Labs, Kelp DAO, Certora, and EtherFi. The April 18 exploit resulted in 116,500 ETH being restaked and issued but without corresponding token burns, creating a shortfall of approximately 76,127 rsETH (valued at around $174.5 million) in the backing assets.