Arbitrum Watchdog Committee Proposes Permanent Ban for Three Projects That Abused Grants

ChainCatcher report: On September 3, the Watchdog Committee of the Arbitrum ecosystem—comprising entities such as Entropy Advisors—submitted a proposal to the governance forum calling for a permanent ban on the projects Good Entry, Limitless, and APX Finance, along with their founders, from participating in any future ArbitrumDAO initiatives. The committee determined that these three projects engaged in grant misuse within the STIP and LTIPP incentive programs, involving a total of 457,553 ARB (approximately $76,000). Specifically, Good Entry received 200,000 ARB in the first STIP round, of which 142,839 ARB were directed to 1,032 ineligible users, with evidence of self-farming via linked addresses; the team refused to cooperate with the investigation. Limitless converted its entire 75,000 ARB allocation into USDC and bridged it to Base, raising suspicions of theft. APX Finance was approved for 525,000 ARB, of which 239,714 ARB were tied to funds stuck in treasury, delayed distributions, and sybil cluster issues. APX later merged with Astherus and rebranded as Aster; approximately 70% of its assets are now on BNB Chain. Under the proposal, the three projects may submit defenses on the forum post before September 10. If their explanations are not accepted and funds are not returned, the committee will initiate three separate Snapshot votes to determine whether to permanently ban the projects and their founders.