Arbitrum freezes $71 million in ether tied to Kelp DAO exploit

The Arbitrum Security Council has taken emergency action to freeze 30,766 ETH, valued at approximately $71 million, which was linked to a $292 million exploit of Kelp DAO. By moving these funds into a governance-controlled intermediary wallet, the council has successfully prevented the attackers from accessing a portion of the stolen assets. This intervention was coordinated with law enforcement and does not affect other network users.

The recovery of these funds accounts for nearly one-quarter of the total amount stolen during the exploit, which involved compromised verifier infrastructure on a bridge provided by LayerZero. As Kelp DAO and LayerZero navigate a dispute over responsibility for the remaining losses, the frozen assets provide a significant offset that will influence future recovery efforts, legal proceedings, and potential loss socialization among affected parties.

(Source：CoinDesk)