Arbitrum Watchdog Committee Cracks Down on Misused DeFi Funds

Arbitrum's Watchdog Committee has taken enforcement action against three DeFi projects - Good Entry, Limitless, and APX Finance. The committee alleges that these projects misused approximately 457,000 ARB from DAO grant programs.

The accusations include distributing funds to ineligible users, converting tokens off-network, and suspected Sybil attacks. If approved, the permanent bans would block the projects and their teams from any future DAO funding but not from using the Arbitrum network itself.

The committee will hold votes after a response period ending around September 10, 2026, marking a significant enforcement step in DAO governance and fund integrity.