Arbitrum Approves Unfreezing $71M ETH in KelpDAO Exploit Recovery

Arbitrum Security Council has approved a joint proposal to unfreeze $71M in ETH tied to the KelpDAO exploit, enabling full recovery efforts via DeFi United's Recovery Guardian. The April 18 LayerZero bridge hack stole 116,500 rsETH (~$293M, 18% supply), triggering $13B Aave TVL outflows, attacker liquidations recovering 90% (13,000 ETH), and Lido's EarnETH resumption. KelpDAO migrated rsETH to Chainlink CCIP amid LayerZero disputes, with frozen Arbitrum funds now released to rebalance reserves and restore rsETH confidence.