Arbitrum (ARB) Announces Urgent Measures Following Major Cryptocurrency Hack Over the Weekend! Here Are the Details

The DeFi sector is witnessing one of its worst periods since the 2022 crash. The KelpDAO attack, one of the most talked-about topics in recent days, resulted in a loss of $290 million. However, the losses didn’t stop there. This attack caused a total outflow of $7 billion across the top 20 chains in just 24 hours.

As the cryptocurrency sector reacts to the KelpDAO attack, Arbitrum has announced that it has urgently frozen approximately 30,766 ETH associated with the KelpDAO vulnerability.

Arbitrum (ARB), the second-layer Ethereum network, announced via its official X account that it had identified an address linked to the KelpDAO attack that occurred on Saturday evening. Following this, Arbitrum stated that it had frozen 30,766 Ethereum (ETH), worth $71.05 million, held by the hacker on Arbitrum One.

According to the statement, the funds were successfully transferred to another frozen wallet via an intermediary and are no longer accessible from the hacker’s address.

“The frozen funds can only be activated by the next decision of the Arbitrum management, and subsequent transactions will be carried out in cooperation with the relevant institutions.”

The hacker’s address starts with 0x5d3919. The individual still holds 75,700 ETH on the Ethereum chain.

As you may recall, in the KelpDAO attack, a large amount of rsETH tokens were stolen from a LayerZero-powered bridge, and most of them were used as collateral on Aave to purchase wETH.

This situation also triggered a debt crisis at Aave, resulting in a total of $10 billion in outflows from the protocol. This affected the Aave price, causing it to fall to around $92.

*This is not investment advice.

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