Arbitrum Security Council Freezes $71.5M in Ethereum linked to $292M KelpDAO Exploit

In brief

• The Arbitrum Security Council has frozen 30,766 ETH worth $71.5 million linked to the weekend's KelpDAO exploit.
• The funds can only be moved by further action by Arbitrum governance, the council said.
• The KelpDAO attackers, thought to be North Korean hackers, have begun moving and laundering funds linked to the exploit.

The Arbitrum Security Council has frozen 30,766 ETH worth $71.5 million allegedly linked to the KelpDAO exploit, moving the funds to an intermediary wallet.

In a tweet, the council explained the “emergency action” was taken following law enforcement input about the exploiter's identity. Following the move, the funds are “no longer accessible to the address that originally held the funds,” the council said, adding that they can only be moved “by further action by Arbitrum governance, which will be coordinated with relevant parties.”

The Arbitrum Security Council has taken emergency action to freeze the 30,766 ETH being held in the address on Arbitrum One that is connected to the KelpDAO exploit. The Security Council acted with input from law enforcement as to the exploiter’s identity, and, at all times,…

— Arbitrum (@arbitrum) April 21, 2026

The Arbitrum Security Council consists of elected signers with emergency powers to protect the layer-2 network during security incidents. When activated, the council can immediately freeze assets and move them to wallets accessible only through subsequent governance votes.

The frozen funds from the alleged KelpDAO exploiter now sit in an intermediary address that requires community approval through Arbitrum's governance process to access.

The freeze sparked debate regarding layer-2 governance and the resultant trade-offs between rapid security response and decentralization, with Arbitrum’s ability to unilaterally freeze funds during emergencies attracting both praise and online.