Arbitrum Watchdog Committee Proposes Permanent Ban for Three DeFi Projects

Arbitrum's Watchdog Committee has proposed permanently excluding three DeFi projects from future DAO programs due to alleged grant abuse cases.

The committee found that Good Entry, Limitless, and APX Finance (formerly ApolloX) had misused funds allocated by ArbitrumDAO. The total amount of $ARB involved is 457,553, valued at around $76,000.

The Watchdog Committee classified the cases as high-severity misuse of DAO funds, which can include fabricated work and theft. Good Entry received 200,000 $ARB through the Short-Term Incentives Program but distributed 142,839 $ARB to ineligible users.

Limitless allegedly moved its entire grant to Base, a separate Ethereum layer-2 network incubated by Coinbase. The committee described this as suspected theft because it removed all the grant money from the Arbitrum ecosystem.