An Arbitrum forum update flagged rising scrutiny around a restriction notice tied to the proposed release of frozen ETH from the Kelp-related rsETH incident. The post asked for input from Entropy, Offchain Labs, the Arbitrum Foundation and the Security Council before the process advances further.
The issue affects a pending Constitutional AIP that seeks to release 30,765.67 ETH immobilized by the Arbitrum Security Council into a coordinated remediation effort involving Aave Labs, KelpDAO, LayerZero, EtherFi and Compound. The original proposal says the funds were frozen on April 21 and moved to a designated address, with governance approval required before any transfer to the recovery safe.
For now, the next point to watch is whether the restriction notice slows the DAO process or forces additional legal review before any on-chain vote. The proposal already outlined a multi-step path including forum discussion, possible Snapshot review, on-chain submission and execution, with the full process estimated at about 49 days.
Source: Arbitrum governance forum.
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