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Arbitrum watchdog asks for permanent bans on 3 grant recipients

A governance proposal would blacklist the projects and their founders across all future ArbitrumDAO programs, after watchdogs found high-severity misuse totaling about 457,553 ARB.

Reported · Written up by our desk · Regulation

Arbitrum's Watchdog Committee is urging ARB holders to permanently bar three DeFi projects and their founders from every future ArbitrumDAO program, arguing the teams misused grants from the DAO's legacy incentive rounds. The proposal, published Sept. 3 by OpCo on the committee's behalf, moves the watchdog program beyond clawbacks and into an ongoing exclusion. It would also apply at the founder level even though two of the three projects have already exited, with the third having merged into Aster, a perpetuals exchange concentrated on BNB Chain.

The committee flagged all three cases as high-severity, citing conduct such as fabricated deliverables and theft. It identified 142,839 ARB against Good Entry, 75,000 ARB against Limitless, and 239,714 ARB against APX Finance, formerly ApolloX, describing a combined total of 457,553 ARB, or roughly $76,000 at ARB's price of $0.166.

According to the proposal, the watchdog program had received 90 reports as of Sept. 2, recovering about 532,000 ARB for the DAO and distributing roughly 268,000 ARB in reporter bounties. For Good Entry specifically, the committee says on-chain analysis found 142,839 ARB of its grant went to 1,032 ineligible users during and after the STIP period, along with evidence of self-farming tied to wallets associated with team addresses, and it adds that the team refused to cooperate when asked for clarification.

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