Arbitrum Watchdog Committee Proposes Permanent Bans for Three DeFi Projects
The Arbitrum Watchdog Committee has proposed permanent bans for three DeFi projects - Good Entry, Limitless, and APX Finance - over allegations of grant misuse tied to earlier incentive rounds.
The committee's findings are specific and damning, with Good Entry accused of distributing 142,839 ARB to ineligible users, suspected team-linked farming on top of that. Limitless is accused of converting 75,000 ARB into USDC and then moving the proceeds off Arbitrum onto Base, a rival Layer 2.
APX Finance faces the heaviest allegations: 239,714 ARB linked to unreturned funds, delayed distributions, and suspected Sybil activity. The disputed amount across all three projects comes to roughly 457,553 ARB.
The proposed exclusions extend beyond the projects to cover founders, team members, and affiliates, effectively shutting every future funding door: no grants, no programs, no DAO-backed initiatives.