Arbitrum Governance Votes to Release 30,765 ETH ($71M) Frozen After Kelp DAO Exploit

As of publication, Arbitrum governance is voting on a proposal to release 30,765 ETH (approximately $71 million) that was frozen by the Arbitrum Security Council on April 21 following the Kelp DAO exploit. The proposal, co-authored by Aave Labs, Kelp DAO, LayerZero, EtherFi, and Compound, has received 100% support from votes cast, representing 34.2 million ARB tokens. The voting window closes next Thursday.

If approved, the funds will be transferred to a recovery address secured by a 3-of-4 Gnosis Safe with signers from Aave Labs, Kelp DAO, Certora, and EtherFi. The April 18 exploit resulted in 116,500 restaked Ether released without corresponding token burns, leaving a shortfall of approximately 76,127 rsETH (valued at roughly $174.5 million) in backing.