Arbitrum Watchdog Committee Seeks Permanent Ban on Three Projects Over Grant Abuse

Arbitrum’s Watchdog Committee submitted a proposal on September 3 asking for permanent bans on Good Entry, Limitless, and APX Finance, as well as their founders, from future ArbitrumDAO programs. According to ChainCatcher, the committee said the three projects abused grants in the STIP and LTIPP incentive programs, involving a total of 457,553 ARB. The proposal said Good Entry received 200,000 ARB in the first round of STIP, with 142,839 ARB sent to 1,032 ineligible users, and cited evidence of self-farming and the team’s refusal to cooperate with an investigation. Limitless reportedly converted all 75,000 ARB into USDC and bridged the funds to Base, which the committee described as suspected theft. APX Finance was approved for 525,000 ARB, of which 239,714 ARB was linked to funds held in the treasury, delayed distribution, and Sybil cluster issues. The proposal said the three projects may respond in the forum by September 10. If their explanations are not accepted and the funds are not returned, the committee will initiate three separate Snapshot votes to decide whether to permanently ban the projects and their founders.