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The crypto industry loves to repeat “code is law.” Griff Green, a member of the Arbitrum Security Council, would like to gently push back on that.
In a Phemex interview published on April 23, 2026, Green argued that blockchains are not absolutely immutable. They depend on community agreement to function. That framing matters a lot more when the person saying it just helped freeze roughly $71 million in stolen funds two days earlier.
## What happened with the KelpDAO freeze
On April 21, 2026, the Arbitrum Security Council executed what appears to be a first-of-its-kind action for a major Layer 2 network. The Council used its multi-signature authority to transfer 30,766 ETH, linked to a KelpDAO exploit, from the attacker’s address into a frozen wallet on Arbitrum One.
That’s roughly $71 million worth of ETH, locked in place by a committee of 12 people. Not a court order. Not a protocol-level bug fix. A governance body making a judgment call in real time.
The action required 7 out of 12 Council members to sign off, which is the threshold built into the multisig structure.
## How the Security Council actually works
The Arbitrum Security Council consists of 12 members, all elected by the Arbitrum DAO. The 7-of-12 multisig threshold means any action needs a supermajority.
The Council does not have direct control over user funds held in smart contracts. Even in a worst-case scenario where 9 out of 12 members were compromised, the Council’s access to everyday user funds would still be limited.
The trust assumption baked into the system is that at least 4 out of 12 members remain honest at any given time. That’s the minimum needed to block a malicious 9-member coalition.
Arbitrum One itself is jointly owned by the Arbitrum DAO and the Security Council.
## The philosophical tension at the heart of Layer 2s
Green’s core point: every blockchain, no matter how decentralized it claims to be, ultimately rests on social consensus. The nodes, the miners, the validators, they all choose to run specific software. They choose to follow specific rules. Change the consensus of the people, and the chain changes too.
The KelpDAO freeze was the first time a major Layer 2 network used its governance apparatus to proactively lock exploited funds.
## What this means for investors and users
For anyone holding assets on Arbitrum One, the KelpDAO freeze clarifies something important: this is not a permissionless system in the absolute sense. It’s a system with defined governance mechanisms that include the power to freeze specific funds under specific circumstances.
The 7-of-12 threshold provides meaningful protection against abuse, but it’s still a human-operated system, with all the trust assumptions that implies.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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