Arbitrum Proposes Permanent Bans for Three DeFi Projects
The Arbitrum Watchdog Committee has proposed permanent exclusion of three DeFi projects from future DAO programs. The projects, Good Entry, Limitless, and APX Finance (formerly ApolloX), have been linked to alleged high-severity misuse of DAO funds.
The committee identified a combined 457,553 ARB, valued at around $76,000, in cases involving the three projects. These amounts are not confirmed thefts but represent separate findings of misused funds.
Good Entry allegedly distributed 142,839 ARB to ineligible users and showed signs of self-farming. Limitless exchanged its entire grant for USDC stablecoin and transferred it to Base, a move investigators classified as suspected theft. APX Finance's case involves unreturned funds, late distributions, 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, ArbitrumDAO will hold separate Snapshot votes for each project. Token holders can vote for a ban, oppose it, or abstain in each case.