Arbitrum Watchdog Seeks Permanent Banning of Three DeFi Projects

Arbitrum's Watchdog Committee has proposed banning three DeFi projects - Good Entry, Limitless, and APX Finance (formerly ApolloX) - from future DAO programs due to alleged grant abuse.

The committee flagged cases involving a combined 457,553 ARB, valued at roughly $76,000. The projects have until September 10 to respond and return any disputed funds.

Good Entry received 200,000 ARB through the Short-Term Incentives Program but allegedly distributed 142,839 ARB to ineligible users. On-chain analysis also found signs of self-farming by the Good Entry team, which refused to cooperate with investigators.

Limitless faces a separate finding tied to the Long-Term Incentives Pilot Program, where it exchanged its entire grant for USDC stablecoin and transferred the funds to Base, an Ethereum layer-2 network incubated by Coinbase. The Watchdog Committee classified this as suspected theft due to the removal of grant money from the Arbitrum ecosystem.

APX Finance received approval for 525,000 ARB but allegedly left a large share of the grant in its treasury addresses instead of distributing it. Investigators also identified transfers to distributor contracts after the required period and suspected Sybil activity connected to team addresses.