Haseeb Qureshi, Managing Partner at Dragonfly, analyzed the freezing of 30,766 ETH belonging to the KelpDAO hacker on April 21, according to Huoxing Finance. He noted that this transaction type is ArbitrumUnsignedTxType (EIP-2718 type 0x65/101), a system-level transaction that cannot be signed by a standard EOA but can only be injected into ArbOS by the Arbitrum Security Council. This action did not involve a chain rollback or historical rewrite; functionally, it is a state-level recovery: the attacker’s private key can still sign transactions, but the ETH at that address has been transferred by the chain itself. This operation also demonstrates the Security Council’s authority under “catastrophic emergency” scenarios as described in Arbitrum’s progressive decentralization documentation.
Arbitrum Freezes Hacker's ETH via System-Level Transaction
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Summary
Arbitrum froze 30,766 ETH from the KelpDAO hacker using a system-level transaction. The action, executed via ArbitrumUnsignedTxType (EIP-2718 type 0x65/101), was injected by the Security Council through ArbOS. This involved state-level recovery, not a chain rollback. The attacker’s private key remains valid, but the ETH was directly transferred by the chain. The incident demonstrates Arbitrum’s contract security mechanisms in action.
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