The Arbitrum Security Council froze 30,766 ETH, worth approximately $71.1 million, held at an address associated with an account linked to the Kelp DAO exploit, which caused a $292 million loss over the weekend.
On Tuesday, Postal Arbitrum stated on X that the security committee has transferred funds to an intermediate frozen wallet and added that this action does not affect the state of other chains or Arbitrum users.
The team stated that the funds will remain frozen unless the arbitration committee approves further action.
The statement said: “The Security Council, based on information provided by law enforcement, identified the attackers and, while remaining committed to safeguarding the security and integrity of the Arbitrum community, ensured that no Arbitrum users or applications were affected.” The Block has reached out to Arbitrum for further information.
Previously, on Saturday, Kelp DAO, a cross-chain bridge powered by LayerZero, suffered a major attack resulting in the theft of 116,500 rsETH tokens worth approximately $292 million.
The preliminary findings from LayerZero suggest that this attack is likely linked to the North Korean hacking group Lazarus.
LayerZero also criticized Kelp DAO's use of a 1-to-1 decentralized verification network (DVN) configuration, arguing that this setup introduces a single point of failure due to the lack of independent verification to detect fraudulent cross-chain messages.
Kelp DAO retracted its statement, saying that the 1:1 DVN setup is LayerZero’s default configuration.