Arbitrum Proposes Permanent Bans for Three DeFi Projects

Arbitrum's Watchdog Committee has proposed banning three DeFi projects from future DAO programs after flagging cases involving 457,553 ARB, valued at roughly $76,000.

The committee identified alleged misuse by Good Entry, Limitless, and APX Finance (formerly ApolloX), with separate permanent-ban votes planned for each project. The Watchdog Committee classified the cases as high-severity misuse of DAO funds, including fabricated work and theft.

Good Entry received 200,000 ARB through Arbitrum's Short-Term Incentives Program but allegedly distributed 142,839 ARB to ineligible accounts. Limitless exchanged its entire grant for USDC stablecoin and transferred the funds to Base, while APX Finance faces concerns over unreturned funds and suspected Sybil activity.

The projects have until September 10 to respond and return any disputed funds. If an explanation does not satisfy the committee and the relevant funds are not returned within the same period, ArbitrumDAO will hold three separate Snapshot votes for each project.