Arbitrum Seizes $71M in ETH Related to Kelp DAO’s rsETH Hack

The network’s security team transferred 30,766 ETH to a restricted wallet, requiring additional governance steps for access.

Key Points:

— Arbitrum’s Security Council has frozen 30,766 ETH, valued at approximately $71 million, connected to the $292 million rsETH breach targeting Kelp DAO, placing the assets in a governance-managed account.

— This emergency measure, developed with law enforcement guidance and without disrupting other Arbitrum users or applications, stops the original attacker from accessing the seized funds.

— The freeze recovers roughly a quarter of the stolen assets and heightens the dispute between Kelp and bridge provider LayerZero over responsibility for the hack and how remaining losses should be shared.

A significant portion of the Kelp DAO funds is now immobilized.

Arbitrum’s Security Council froze 30,766 ETH worth roughly $71 million on Monday night, moving funds linked to Saturday’s $292 million rsETH exploit into an intermediary wallet that can only be accessed through further Arbitrum governance action.

rsETH is a liquid restaking token issued by KelpDAO and represents a user’s position in restaked ether (ETH).

The council said it acted on law enforcement’s input regarding the exploiter’s identity and executed the freeze