Arbitrum 30k ETH tied to Kelp hack.
Ethereum layer-2 blockchain Arbitrum on Monday said more than 30,000 Ether worth nearly $71.2 million were seized in a wallet linked to a Kelp protocol exploit.
The Arbitrum Security Council, a 12-member body elected by the Arbitrum community, has taken “emergency action” to freeze 30,766 ether (ETH) held in a wallet linked to kelp exploitation.
It added that the ETH was moved to an “intermediate frozen wallet” where it is “no longer accessible to the address that holds the funds and may be subject to further action by arbitrum administration.”
Kelp, a liquid recovery protocol, was hacked on Saturday for at least $293 million by a LayerZero-powered bridge, and LayerZero blamed North Korea for the attack.
The attack resulted in millions of dollars worth of “bad debt” in the highly connected crypto lending market, as the attackers used stolen kelp tokens to lend on the lending platform Aave.
Blockchain freezing crypto is a divisive move in the crypto sector, with opponents of the freeze saying it goes against the technology's purpose, while supporters say it strengthens security and preserves the integrity of the network.
A number of users on X criticized Arbitrum for the ban and questioned its lack of centralization given the amount of money banned by the council decree.
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Griff Green, a member of the Arbitrum Security Council, posted to X that the group “did not make this decision lightly, there were countless hours of debate, technical, practical, ethical and political issues.”
Green added that nine members of the 12-member House voted to block the money, but did not share further details.
Arbitrum said the council acted with input from law enforcement and “considered its commitment to the safety and integrity of the Arbitrum community without affecting any Arbitrum users or applications.”
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