Arbitrum Security Council Freezes $71.5M Linked to $292M KelpDAO Exploit

The Arbitrum Security Council has frozen $71.5 million in $ETH tied to the 292 million KelpDAO exploit, according to a report shared by @MyriadMarkets on April 21, 2026.

The freeze represents one of the more significant uses of Arbitrum's emergency governance powers, which allow the Security Council — a multisig body of elected delegates — to act swiftly in response to threats or illicit activity on the network without going through standard governance voting procedures.

Background

KelpDAO is a liquid restaking protocol that allows users to deposit assets and receive liquid tokens in return. The 292 million exploit represents a major breach affecting the protocol. The 71.5 million now frozen on Arbitrum suggests a portion of the stolen funds were moved or held on the Layer 2 network following the attack.

The Arbitrum Security Council's ability to freeze funds is a contested but established emergency power, designed to protect users in the event of exploits or critical vulnerabilities.

What to watch: Whether additional funds linked to the exploit are identified on other networks, and how KelpDAO responds to the incident, including any plans for affected users.