Arbitrum Proposes Permanent Bans on DeFi Projects Over Alleged $76K Fund Misuse
Arbitrum's Watchdog Committee has proposed permanently banning three DeFi projects, Good Entry, Limitless, and APX Finance, from future DAO programs due to alleged fund misuse. The committee found issues such as funds sent to ineligible users, transfers outside the Arbitrum ecosystem, and suspected self-farming or Sybil attacks.
The committee discovered that these projects had allegedly misused 457,553 ARB tokens worth around $76,000. Each project has until September 10 to respond and return disputed funds before separate DAO votes decide on the bans.
According to Arbitrum, if approved, the bans would block future program participation without freezing wallets or contracts. This move highlights Arbitrum's efforts to improve grant oversight and protect its ecosystem.