Arbitrum Security Council Freezes Over 30,000 ETH After KelpDAO Attack

On April 24, following the KelpDAO attack, the Arbitrum Security Council intervened to freeze more than 30,000 ETH. According to BlockBeats, this action successfully prevented the transfer of some stolen funds but sparked intense debate over the boundaries of decentralization. The operation was carried out by a 12-member security council elected by token holders, who used special permissions to transfer the attacker's funds to an 'ownerless wallet,' effectively freezing them. Supporters argue that this move bought crucial time for the industry, preventing further laundering of the funds and serving as a necessary 'security-first' mechanism. Critics, however, contend that this case demonstrates that even in so-called decentralized networks, a few individuals can intervene and alter on-chain outcomes at critical moments. This challenges the core principle of 'code is law' and raises concerns about potential future misuse. Arbitrum responded by stating that the mechanism was designed to be transparent and community-authorized, serving as a 'last line of defense in extreme situations.' They emphasized that it reflects a balance between security and decentralization, rather than a rejection of the latter.