Arbitrum Freezes 30,766 ETH Tied to $290M KelpDAO Exploit
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KelpDAO suffered a major DeFi hack that drained rsETH, totaling roughly $290–292M; LayerZero blamed North Korea-linked Lazarus Group and cited weak security settings, highlighting cross-chain risk. Arbitrum’s Security Council, with law enforcement input, froze and moved 30,766 ETH (~$70.97M) from Arbitrum One into a governance-controlled intermediary wallet; funds can only be released via coordinated governance action. Incident underscores systemic crypto/DeFi security and governance gaps for cross-chain protocols (LayerZero/Arbitrum), likely weighing on adoption and market trust despite partial fund recovery.
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- Arbitrum secures 30,766 ETH worth $70.97M, moving funds to frozen wallet.
- The KelpDAO hack totaled roughly $290 million to $292M after attackers drained rsETH.
- LayerZero blamed North Korea’s Lazarus Group and pointed to weak security settings.
Arbitrum has recovered $70.97 million in ETH tied to the recent KelpDAO exploit, taking emergency action to secure 30,766 ETH that had been sitting on Arbitrum One.
The funds were moved from addresses linked to the attacker into a frozen intermediary wallet controlled through governance safeguards.
According to Arbitrum, the assets are no longer accessible to the exploiter and can only be moved through future governance action coordinated with relevant parties.
Emergency Action Secures 30,766 ETH
Arbitrum said its Security Council acted with input from law enforcement regarding the exploiter’s identity.
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