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Analysis: Arbitrum Freezes KelpDAO Hacker's ETH in System-Level Transaction, Injected via ArbOS by Security Council

2026.04.21 14:09:15

On April 21st, Dragonfly General Partner Haseeb Qureshi published an analysis of the Arbitrum Security Council’s freeze of 30,766 ETH belonging to the KelpDAO hacker. Key details from the analysis: - The transaction was an **ArbitrumUnsignedTxType** (EIP-2718 type 0x65/101) — a system-level transaction that regular EOAs cannot sign, and only the Arbitrum Security Council can inject via ArbOS. - This action did **not** involve chain rollbacks or historical state rewrites; it was a *state-level clawback*: the hacker’s private key still works for signing transactions, but the ETH in their address was moved by the chain itself. - The operation showcased the Security Council’s authority in the "catastrophic emergency" scenario outlined in Arbitrum’s progressive decentralization documentation.
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