BroadChain, April 23, 17:16 - The Arbitrum Security Council recently used its emergency powers to freeze and recover approximately $72 million in assets from an address suspected to be controlled by North Korean hackers. This marks the first instance in the crypto industry where a Layer 2 network has activated a "God mode" to freeze on-chain funds. Security Council member Griff Green explained the decision-making process and controversies in detail during a podcast.
Griff Green pointed out that the notion of blockchain being "immutable" is essentially a misunderstanding, as its foundation lies in social consensus. He drew a comparison between the 2016 The DAO hack and this incident, emphasizing that both operations followed a similar logic: changing rules through community consensus. In this action, the Security Council collaborated with the Seal 911 team, using a 9-of-12 multi-signature mechanism to transfer the funds to a new address.
Griff Green criticized Circle for its "continued inaction" regarding the North Korean hacker incident, arguing that its decisions are driven by financial statements, while Tether proactively froze the relevant funds. He also noted that North Korean hackers typically gain access through social engineering attacks on key holders rather than smart contract vulnerabilities. The hackers left the funds idle in the address for two days, providing a window for the action.
The recovered $72 million will be subject to a vote by Arbitrum DAO token holders to determine the allocation plan. Griff Green advocates for 100% of the funds to be returned to users. He emphasized that market behavior is the true cornerstone of decentralization—if users are dissatisfied with the decision, they can sell their tokens to express their opinion.