Arbitrum Security Council Uses Emergency Powers to Transfer 30,765 ETH from Attacker

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In accordance with CFT (Countering the Financing of Terrorism) protocols, the Arbitrum Security Council transferred 30,765 ETH from the Kelp DAO attacker to a secure address on April 21 (UTC+8). The action was executed via a system-level transaction—ArbitrumUnsignedTxType (EIP-2718 type 0x65/101)—injected through ArbOS without a chain rollback. The ETH has been frozen, demonstrating the Council’s emergency powers in response to attacks on risk-on assets. The attacker’s private key remains active, but the funds were moved by the chain itself.

According to ME News, on April 21 (UTC+8), Haseeb Qureshi, Managing Partner at Dragonfly, analyzed the move by the Arbitrum Security Council to transfer 30,765 ETH held by the Kelp DAO attacker to a secure address and freeze them. He noted that this transaction type is ArbitrumUnsignedTxType (EIP-2718 type 0x65/101)—a system-level transaction that cannot be signed by a regular 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 have been transferred by the chain itself. The operation also demonstrates the Security Council’s authority under “catastrophic emergency” scenarios as described in Arbitrum’s Progressive Decentralization documentation. (Source: Foresight News)

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