Decentralization gets tested in moments like this.
After the @KelpDAO exploit, Arbitrum froze ~$71M in ETH tied to the attacker, moving funds into a controlled wallet governed by its security council.
The decision followed internal voting and coordination with external authorities.
Technically effective, but it raises deeper questions.
Freezing funds limits damage and protects users, yet it also introduces a layer of discretionary control that many assume doesn’t exist in these systems.
So, where should the line sit between protecting the ecosystem and preserving credible neutrality?
From X
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