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Arbitrum requests the release of $71 million in frozen Ethereum for the Kelp recovery plan
CryptoWorld Net news reports that, according to CryptoNewsFlash, Arbitrum is requesting the release of approximately $71 million in frozen Ethereum to support Kelp DAO’s recovery plan. Multiple major protocols, including AAVE, Kelp, and LayerZero, have submitted constitutional proposals on the Arbitrum forum seeking to release these funds. If approved, these assets will be transferred to DeFi United, a cross-protocol rescue effort established in response to last week’s Kelp DAO attack event. The frozen funds are not only a security measure, but also an important part of a broader recovery equation. The coalition argues that these funds should be redirected into a coordinated compensation process to restore RSETH’s backing. Although releasing the frozen funds may seem reasonable, it also forces Arbitrum governance to set a precedent for dealing with the intersection between emergency control and market recovery.