Arbitrum Unfreezes $71M in ETH After Kelp Exploit Recovery Proposal Gains 90.5% Voter Support

According to a proposal co-authored by Aave Labs, Kelp DAO, LayerZero, EtherFi and Compound, Arbitrum's governance voted on May 7 to unfreeze 30,765 ETH (approximately $71 million) frozen after the Kelp DAO exploit. More than 90.5% of voting power, representing 173.9 million Arbitrum tokens, supported the motion, with less than 1% voting against.

The unfrozen ETH will be transferred to a recovery address managed by a 3-of-4 multisignature wallet. As part of the broader "DeFi United" recovery effort, eight protocols including Mantle, Lido DAO, and Ethena have collectively pledged 43,000 ETH (valued at approximately $101 million) to restore rsETH's backing after the attack drained 116,500 rsETH worth $290 million to $293 million.