The Arbitrum Security Council has frozen 30,766 ETH, valued at approximately $71.1 million, held in an address on Arbitrum One linked to the $292 million Kelp DAO exploit over the weekend.
In a Tuesday post on X, Arbitrum stated that the security council moved the funds to an intermediary frozen wallet and that the action did not affect other chain states or Arbitrum users.
The funds will remain frozen unless further action is approved through Arbitrum governance, according to the team.
“The Security Council acted with input from law enforcement as to the exploiter’s identity, and, at all times, weighed its commitment to the security and integrity of the Arbitrum community without impacting any Arbitrum users or applications,” said the statement. The Block reached out to Arbitrum for further information.
This action follows a major exploit on Saturday involving Kelp DAO, a LayerZero-powered cross-chain bridge, which resulted in the loss of 116,500 rsETH tokens valued at approximately $292 million.
Preliminary findings from LayerZero suggest the attack was likely linked to the North Korean hacking group Lazarus.
LayerZero also criticized Kelp DAO’s use of a 1-of-1 decentralized verified network (DVN) configuration, arguing it introduced a single point of failure by lacking independent verification to detect fraudulent cross-chain messages.
Kelp DAO responded, stating that the 1-of-1 DVN setup was shipped as the default configuration by LayerZero.
Source: X.com
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