Alert: Arbitrum Just Froze $70M in $ETH — 9/12 Council Vote After KelpDAO Exploit
Arbitrum's Security Council mobilized after the KelpDAO exploit. 30,766 $ETH secured before the attacker could withdraw.
Key facts:
- 9 out of 12 council members approved the freeze
- Law enforcement looped in
- No user funds impacted
The L2 security model worked under live fire conditions. $ETH ecosystem protected $70M with a governance mechanism, not just code.
Implication: This validates Arbitrum's emergency response but opens a hard decentralization question for L2 investors.
Verdict: Security event contained. Watch $ETH response as the market prices in the governance trade-off.