Arbitrum 's Security Council has frozen 30,766 ETH (approximately $71.1 million) held in an address on Arbitrum One, believed to be linked to the $292 million Kelp DAO mining operation that occurred last weekend.
In a post on X on Tuesday, Arbitrum said the board had transferred the funds to a “frozen intermediary wallet,” while asserting that the move did not affect the operational status of the network or other Arbitrum users.
Arbitrum said the funds would remain frozen unless a further decision is made through Arbitrum's governance mechanism.
According to the announcement, the Security Council acted on information from law enforcement regarding the attacker's identity, and always weighed the need to protect the safety and integrity of the Arbitrum community against impacting users or applications on the system.
This move follows Saturday's major hack targeting the Kelp DAO, which involved a cross-chain bridge using LayerZero, resulting in the theft of 116,500 rsETH (approximately $292 million).
Initial assessments from LayerZero suggest the attack was likely linked to North Korea's Lazarus hacking group. LayerZero also criticized Kelp DAO's use of a "1-of-1" decentralized verified network (DVN) configuration, arguing that this creates a single point of failure due to the lack of an independent verification layer to detect forged cross-chain messages.
Kelp DAO responded that the DVN 1-of-1 setup was Capital implemented by LayerZero as the default configuration.
The article "Arbitrum freezes $71 million worth of ETH related to Kelp DAO hack" first appeared on CoinMoi .
