TLDR
- Arbitrum Security Council froze 30,766 ETH linked to KelpDAO exploit using a controlled technical method.
- Funds were transferred to a frozen intermediary wallet, blocking access from the original address holder.
- The action followed coordination with law enforcement regarding the exploiter’s identity and movement.
- Future fund decisions will be handled through Arbitrum governance with oversight from relevant parties.
The Arbitrum network has moved quickly to contain funds linked to the KelpDAO exploit. A total of 30,766 ETH has been secured after coordinated action by the Arbitrum Security Council and relevant authorities.
Emergency action secures compromised funds
The Arbitrum Security Council confirmed it froze the ETH held in an address tied to the exploit. The action followed technical review and coordination with law enforcement agencies. The goal was to secure the funds while keeping the network stable.
In a public update shared via social media, the Arbitrum team stated that the Arbitrum Security Council acted after receiving input about the exploiter’s identity.
The statement noted that the process focused on protecting users without disrupting applications on Arbitrum One.
The Arbitrum Security Council emphasized that every step was measured. It balanced security priorities with the need to avoid unintended changes to the broader chain state. As a result, no user funds outside the targeted address were affected.
The team also explained that the funds were moved using a controlled technical method. This ensured that the transfer did not interfere with normal network operations. The Arbitrum Security Council maintained that the action was precise and limited in scope.
Controlled transfer and governance oversight
Following the freeze, the ETH was transferred to an intermediary wallet under strict controls. According to the update, this wallet remains frozen and inaccessible to the original address holder. Only governance-led actions can authorize any future movement.
The Arbitrum Security Council confirmed that the transfer was completed on April 20 at 11:26 pm ET. From that point, control of the funds shifted entirely away from the compromised address. This step closed immediate risks tied to the exploit.
The Arbitrum Security Council also noted that any next steps will involve coordination with relevant parties. Governance processes will guide decisions regarding the secured funds. This ensures transparency and structured handling of the situation.
At the same time, the Arbitrum Security Council reiterated its commitment to network integrity. It stated that user activity and decentralized applications continued without disruption during the process. This outcome reflected careful planning and execution.
The Arbitrum Security Council remains central to ongoing developments. Its role now extends to overseeing governance actions tied to the frozen funds. The council continues to work with external partners as needed.
This event places the Arbitrum Security Council at the center of both response and recovery efforts. The secured ETH remains under controlled conditions while further steps are prepared.
