Layer 2 blockchain Ethereum Arbitrum on Monday froze over 30,000 Ether worth approximately $71.2 million held in a wallet linked to the recent Kelp protocol exploit.
Decision he said on Monday, its 12-member security board elected by the Arbitrum community took “emergency action” to freeze 30,766 Ether (ETH) held in a wallet linked to the Kelp exploit.
He added that the ETH has been moved to an “intermediate frozen wallet” and is “no longer available at the address where the funds were originally located and can only be transferred through further action by Arbitrum management.”
Kelp, a fluid replenishment protocol, was hacked for at least $293 million on Saturday via a bridge powered by LayerZero, and LayerZero accused North Korea of carrying out the attack.
Source: Decision
The exploit caused multi-million-dollar “bad debts” in the highly interconnected cryptocurrency market as the attackers used stolen Kelp tokens to borrow cryptocurrencies on the Aave lending platform.
Freezing cryptocurrencies on the blockchain is divisive in the cryptocurrency industry, with opponents of the freeze arguing that such an action defeats the purpose of the technology, while supporters say it increases security and maintains the integrity of the network.
Many users on X criticized Freeze Arbitration and questioned its decentralization in lightweight of the freezing of funds by council decree.
Related: The hackers impersonated the eth.limo team and took over its domain: autopsy
Griff Green, member of the Arbitrum Security Council, sent X that the group “did not make this decision lightly, there were countless hours of technical, practical, ethical and political debates.”
Green added that nine members of the 12-member board voted to freeze the funds, but gave no further details.
Arbitrum said its board acted with input from law enforcement and “considered its commitment to the security and integrity of the Arbitrum community without impacting Arbitrum users or applications.”
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