Arbitrum’s security council has frozen $70 million in funds linked to an exploit by North Korea’s Lazarus Group. The hack initially targeted KelpDAO, draining significant assets.
This action marks an unusual intervention, as Arbitrum’s council utilized emergency multisig powers to upgrade a bridge contract mid-exploit. This unprecedented move allowed them to secure a substantial portion of the stolen funds before they could be moved.
The market now anticipates further large-scale exploits by year-end, reflecting a perceived increase in frequent and severe hacks within the crypto space. This event raises questions about whether other governance bodies will adopt similar emergency measures and how this impacts attacker strategies against cross-chain bridges.