Arbitrum Watchdogs Give Three DeFi Projects Deadline for Misuse Claims

Arbitrum's Watchdog Committee has given three DeFi projects - Good Entry, Limitless, and APX Finance (formerly ApolloX) - until September 10 to respond to high-severity misuse findings and return funds it considers unresolved.

The committee cited figures amounting to 457,553 ARB, which combines different findings rather than representing one amount established as stolen, outstanding, or recoverable. The watchdog alleges that Good Entry distributed 142,839 ARB to ineligible users during the Short-Term Incentives Program and engaged in self-farming by wallets connected to team addresses.

Limitless is accused of swapping 75,000 ARB into USDC and transferring the funds to Base, while APX Finance is tied to overlapping issues including an unspecified substantial portion left unutilized in treasury addresses.

If the projects fail to respond or return the funds within the one-week window, they may face separate votes on permanent exclusion from future DAO programs. The watchdog says that a ban involving an operating project would cover founders, current team members, and affiliated contributors.