Arbitrum Proposes Ban on Grant Recipients Over Alleged Misuse
Arbitrum is considering permanent program bans for three grant recipients due to alleged misuse of funds. The proposals, made by the Watchdog Committee, aim to exclude Good Entry, Limitless, and APX Finance from future ArbitrumDAO programs.
The allegations include claims that Good Entry distributed 142,839 ARB to ineligible users, while Limitless allegedly swapped 75,000 ARB into USDC and transferred funds from Arbitrum to Base. APX Finance is accused of having unreturned funds, delayed distributions, and suspected team-linked Sybil activity.
The projects have until September 10 to present their cases, after which the committee plans to hold three separate Snapshot votes. A successful vote would make the relevant project and covered people ineligible for future grants, incentive programs, and other DAO-backed opportunities.
The proposed exclusions are intended to prevent a simple rebranding of teams by extending the ban to founders, current team members, and affiliated contributors. This approach puts attribution at the center of the vote, requiring token holders to consider what evidence links a wallet or contributor to the people who controlled the grant decisions.