Arbitrum Excludes Three Projects with 457,553 ARB from Support

Arbitrum (ARB) DAO has initiated the process to exclude Good Entry, Limitless, and APX Finance from its future DAO support program due to allegations of grant misuse. This proposal includes restrictions on eligibility for grants and incentive participation, rather than wallet freezes or smart contract blocks. The operating organization, Offco, classified these projects as high-risk misuse cases during a governance forum on September 3 and demanded that they clarify their positions by September 10. The total amount involved in these three cases is 457,553 ARB, with Good Entry being cited for distributing 142,839 ARB to ineligible users, and Limitless for converting 75,000 ARB from LTIPP funds into USDC before transferring it to Base. APX Finance was separated due to a case involving 239,714 ARB related to unreturned funds, delayed distributions, and civil allegations. The committee plans to conduct separate votes for each project. Voting options include support for exclusion, opposition, or abstention, and the actual voting timeline may vary depending on the responses and return status from the projects. This sanction proposal does not involve on-chain execution but restricts eligibility for DAO funding program applications and incentive participation. As of September 2, 90 reports of misuse have been received, and approximately 532,000 ARB have been recovered.

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