Arbitrum Watchdog Committee Gives Three DeFi Projects Deadline to Respond to Misuse Allegations

Arbitrum's Watchdog Committee has given three DeFi projects - Good Entry, Limitless, and APX Finance (formerly ApolloX) - until September 10 to respond to allegations of misuse and return funds. The committee claims that these projects have been involved in high-severity incidents, including self-farming by team addresses, unutilized treasury funds, and Sybil activity.

The alleged misuses add up to $457,553 worth of ARB tokens, but it's not clear how much of this amount represents actual stolen or recoverable funds. The projects have until September 10 to provide an explanation for the incidents and return any disputed funds. If they fail to do so, the committee will proceed with a vote on permanent exclusion from future DAO programs.

The proposed ban would cover not only the projects themselves but also their founders, current team members, and affiliated contributors. The measure is seen as a governance-access sanction rather than a direct enforcement action.