A community vote on Arbitrum that would release $71 million in frozen Ether tied to the Kelp exploit is on track to pass, moving the recovery effort closer to a binding onchain decision. The Snapshot vote, which opened earlier this week, has drawn overwhelming support, signaling broad agreement among token holders to unlock the funds.
What the Snapshot Vote Does
The current vote is a temperature check — not a final decision. But its near-certain approval clears the way for a formal onchain governance proposal on Arbitrum. That proposal would authorize the release of the frozen ETH, which has been locked since the Kelp exploit drained the funds earlier this year.
Kelp, a liquid restaking protocol built atop EigenLayer, suffered an exploit in early May that saw roughly $71 million in Ether moved to a wallet that was quickly frozen by Arbitrum’s security mechanisms. The funds have remained inaccessible since, with recovery efforts stalled by legal and governance questions.
Why Release Now
Proponents of the vote argue that returning the funds to Kelp’s treasury is the fairest outcome, given that the exploit was not the fault of the protocol’s users or developers. The frozen ETH belongs to Kelp’s depositors, they say, and holding it longer only hurts those who lost money in the attack.
Critics have raised concerns about setting a precedent — releasing funds tied to an exploit could encourage future attacks, they argue — but the vote data suggests those worries haven’t gained traction. As of Wednesday, more than 99% of the roughly 10 million ARB tokens cast favored the release.
What Happens Next
If the Snapshot vote passes as expected, the Arbitrum DAO will move to a binding onchain proposal. That proposal will require a separate vote, with a quorum and approval threshold. If it clears, the $71 million in frozen ETH will be transferred back to Kelp’s control.
The timeline for the onchain vote hasn’t been set, but it typically follows within a week of the Snapshot result. For Kelp users waiting to recover their funds, that day can’t come soon enough.
