Arbitrum Freezes $71M ETH Amid Kelp Protocol Hack Fallout

Arbitrum's security council voted to freeze 30,766 ETH worth approximately $71.2 million on Monday after tracing them to an address connected to the recent Kelp protocol exploit.

The Kelp liquid restaking protocol was hacked through its LayerZero-powered bridge, with attackers draining at least $293 million. The LayerZero team attributed the attack to a state-sponsored threat actor.

Nine of the 12 elected members of the Arbitrum Security Council voted in favor of the freeze, which places the assets under collective institutional control pending further review.