Arbitrum Watchdog Committee Issues Ultimatum to Three DeFi Projects
Arbitrum's Watchdog Committee has given three DeFi projects until September 10 to respond to high-severity misuse findings and return funds they consider unresolved, or face exclusion from future DAO programs. The projects, Good Entry, Limitless, and APX Finance (formerly ApolloX), are accused of various misuses, including self-farming by team addresses and swapping funds to Base.
According to the committee, on-chain analysis found 142,839 ARB was distributed to ineligible users during Good Entry's Short-Term Incentives Program. Limitless is accused of transferring 75,000 ARB to Base, while APX Finance faces allegations of unutilized funds in treasury addresses and late transfers.
The watchdog has not received responses from the projects as of September 5, and a vote on exclusion will only follow if their explanations are unsatisfactory and they fail to return the funds within the one-week window. The proposed ban would cover founders, current team members, and affiliated contributors, but would not execute wallet freezes or disable protocols.