Arbitrum Watchdog Sounds Alarm on Three DeFi Projects

The Arbitrum Watchdog Committee has issued warnings to three DeFi projects: Good Entry, Limitless, and APX Finance. The committee alleges high-severity misuse findings in each project, totaling 457,553 ARB.

The watchdog claims that Good Entry distributed 142,839 ARB to ineligible users during the Short-Term Incentives Program, while also accusing the project of self-farming with team addresses. The project refused to provide clarification, according to the committee.

Limitless is accused of swapping 75,000 ARB into USDC and transferring the funds to Base, but the watchdog was unable to reach team members for clarification or recovery.

The APX Finance finding is more complex, with 239,714 ARB tied to overlapping issues including unutilized funds in treasury addresses and alleged Sybil activity linked to team members. The project had requested 525,000 ARB in its application.