Arbitrum Uses System-Level Transaction to Freeze Hacker's 30,766 ETH

Dragonfly Managing Partner Haseeb Qureshi said Arbitrum froze 30,766 ETH tied to the KelpDAO hacker on April 21, Huoxing Finance reported. Qureshi noted the transaction was an ArbitrumUnsignedTxType (EIP-2718 type 0x65/101), a system-level transaction that cannot be signed by a standard EOA and can only be injected into ArbOS by the Arbitrum Security Council. He added that the move did not involve a chain rollback or rewriting history. In practice, it amounted to state-level recovery: the attacker's private key can still authorize transactions, but the ETH at that address was moved by the chain itself. The action also highlights the Security Council's powers under "catastrophic emergency" provisions described in Arbitrum's progressive decentralization documentation.