Arbitrum's Security Council Freezes 8,425 ETH Tied to Binance Exploit

The Security Council moved fast. In an emergency action on Oct. 30, it froze 8,425 ETH and 74,559,805.2 ARB sitting on Arbitrum One in an address tied to the Binance exploit. The council said no other users' funds or applications were affected, and it pulled off the transfer using a temporary upgrade to the Ethereum Inbox contract.

The frozen crypto isn't going anywhere quietly. It's parked in a holding address, and moving it again requires a DAO governance vote. On Nov. 5, Binance formally asked the Arbitrum DAO to hand the funds back, starting a process expected to run about seven weeks.

While the freeze drama plays out, Arbitrum kept shipping. Paxos' Global Dollar went live on Arbitrum One on Oct. 6, with integrations from Morpho, Uniswap, GMX, Kraken and Maple Finance, according to The Crypto Times. Ten days later the Arbitrum Foundation opened its Stablecoin Growth Program — protocols need at least $1 million in stablecoin balances, and accepted teams must make USDG their primary stablecoin on Arbitrum One.

There's real money on the table, per Phemex: a 2 million ARB reward pool, with the first 10 teams to reach a 30-day average USDG balance of $10 million each eligible for up to 200,000 ARB.

Other launches stacked up too. Fhenix brought its privacy layer to Arbitrum on Oct. 21, letting smart contracts work with encrypted data. A day later, aeroxyz — the merged Aerodrome and Velodrome exchange — went live on Arbitrum and six other networks.

Robinhood Chain, which runs on Arbitrum technology, cleared $1.07 billion in total value locked on Nov. 4. ARB was trading at $0.1674, up almost 7% over the past day and 3.7% on the week.