Arbitrum Security Council froze $71 million worth of ETH▼$1,661.57 stolen in the Kelp DAO hack.
Arbitrum’s Security Council froze 30,766 Ethereum (ETH) worth approximately $71 million linked to a major exploit of the Kelp DAO protocol that occurred over the weekend.
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The funds were moved to a special intermediate wallet. Access is only possible through a future vote in Arbitrum’s governance system.
How Arbitrum’s Team Acted
According to Arbitrum, the Security Council acted based on information from law enforcement and “did not take this decision lightly.” The freeze did not affect other users or applications on the network.
“The Council weighed its responsibility for the safety and integrity of the Arbitrum community without impacting other users and applications,” the official statement said.
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Community Reaction
The fund freeze drew mixed reactions from the crypto community. Some users criticized Arbitrum for interfering with network operations, noting that such actions run counter to decentralization principles.
Others believe such measures are necessary in emergency cases to protect the ecosystem.
The Kelp DAO exploit occurred on Saturday, resulting in losses of approximately $292M to $293M. The attack was carried out through a LayerZero-based bridge. LayerZero preliminarily linked the incident to the North Korean hacker group Lazarus.
Kelp DAO is currently coordinating efforts to create a recovery fund and discussing possible socialization of remaining losses. LayerZero publicly accused Kelp of using an insecure bridge configuration (1-of-1 DVN), which created a single point of failure.
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How Is ETH Doing?
At the time of publication on April 21, 2026, ETH trades at approximately $2,300. Over the past 24 hours, the cryptocurrency has barely moved, rising just over 1%.
On April 20, BitMine added 101,627 ETH worth approximately $235 million to its reserves. The firm now holds 4.12% of Ethereum’s total supply and aims to accumulate 5%. This makes BitMine one of the world’s largest ETH holders.
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