Arbitrum Watchdog Seeks Permanent Bans for Three DeFi Projects
The Arbitrum Watchdog Committee has proposed a permanent ban on three DeFi projects and their founders from participating in future DAO programs. The committee alleges that Good Entry, Limitless, and APX Finance (formerly ApolloX) misused grants drawn from the DAO's legacy incentive rounds.
According to the proposal, Good Entry was allocated 200,000 ARB in the first round of the Short-Term Incentive Program but used 142,839 ARB to fund ineligible users and engaged in self-farming. Limitless swapped its entire 75,000 ARB allocation into USDC and bridged it to Base, effectively removing grant funds from the Arbitrum ecosystem. APX Finance was found to have misused 239,714 ARB of its allocated 525,000 ARB by leaving unspent funds in team treasury addresses.
The committee deemed all three cases 'high-severity' and has flagged a total of 457,553 ARB for recovery. The DAO approved the Watchdog Program in an on-chain vote last year with a budget of 400,000 ARB to pay reporters a base bounty tiered by severity.