The Arbitrum Security Council has frozen 30,766 ETH on Arbitrum One related to the recent KelpDAO attack.

The Council says they acted after collaborating with law enforcement regarding the perpetrator's identity.

The Arbitrum Council is moving funds to a wallet that only the governance can unlock

BeInCrypto reported that attackers drained approximately 116,500 rsETH, worth about 292 million USD, from KelpDAO on April 18. The perpetrator then used the stolen rsETH as collateral on Aave V3 and borrowed a large amount of WETH against it.

“KelpDAO appears to have had over 280 million USD stolen an hour ago on Ethereum and Arbitrum. The attack addresses received funds via Tornado Cash,” wrote ZachXBT on Telegram.

Now the Arbitrum Security Council has transferred 30,766 ETH to a temporarily frozen wallet just before midnight ET on April 20, according to the team's statement. Thus, the original address can no longer access the funds.

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Further actions from the governance can move ETH from the new location. Arbitrum states that the process is coordinated with relevant parties.

“After careful technical review and consideration, the Security Council identified and implemented a technical solution to move funds securely without affecting any other chain state or Arbitrum users,” the team says.

The Security Council is a group of 12 members elected by the Arbitrum DAO. They are responsible for making rapid decisions and taking urgent actions to protect the DAO, its members, and the entire Arbitrum community. Today's action is a clear example of these emergency powers.

The KelpDAO attack was the largest decentralized finance (DeFi) attack in 2026. LayerZero has stated that the attack, according to preliminary evidence, is linked to North Korea's Lazarus Group, likely their TraderTraitor sub-unit.