# Arbitrum Freezes 30,766 ETH From KelpDAO Exploiter *The Arbitrum Security Council executed an emergency upgrade to freeze $71M in ETH tied to the KelpDAO exploit, briefly modifying an inbox contract to impersonate the exploiter.* By [ETH Daily](https://ethdaily.io) ยท 2026-04-21 news, 2026, april2026, arbitrum, kelpdao, exploit, security-council, governance, recovery, cross-chain, security --- The Arbitrum Security Council [executed](https://x.com/arbitrum/status/2046435443680346189) an emergency upgrade to freeze 30,766 ETH from an address involved in the [KelpDAO exploit](https://ethdaily.io/kelpdao-layerzero-bridge-exploit). As part of the recovery effort, $71 million in ETH was moved from the exploiter's wallet into a frozen intermediary address. The funds will remain frozen until an Arbitrum DAO vote approves further action. Council member Patrick McCorry [explained](https://x.com/stonecoldpat0/status/2046446826174529660) that the council briefly modified the chain's inbox contract on L1 to include a function enabling cross-chain messages that could impersonate any sender. Using this capability, a single transaction impersonated the exploiter's address to transfer the funds. Immediately afterward, the inbox contract was restored to its original state. The Arbitrum DAO will need to decide how to allocate the recovered funds. It will need to determine whether to use them to compensate [Aave users for losses](https://ethdaily.io/aave-freezes-eth-lst-markets) or return them to KelpDAO to help restore rsETH backing. * * * Sponsored by ------------ ![Lido Earn](https://storage.googleapis.com/papyrus_images/81f33d00a6b2ca439a0c600e476f7ed085d865617c3c00a46875ed73b4c50710.jpg) EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at [stake.lido.fi/earn](https://stake.lido.fi/earn) * * * Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed. --- *Originally published on [ETH Daily](https://ethdaily.io/arbitrum-freezes-kelpdao-exploiter-eth)*