Arbitrum watchdog committee seeks permanent bans for three grant recipients over alleged misuse

Arbitrum’s oversight body wants to make an example of three DeFi projects, and the message is pretty unambiguous: misuse DAO funds, get locked out permanently. The Arbitrum Watchdog Committee has formally recommended that ArbitrumDAO voters permanently bar Good Entry, Limitless, and APX Finance from every future DAO-funded program. The allegations center on grant misuse tied to two earlier incentive rounds, the Short-Term Incentive Program and the Long-Term Incentive Pilot Program, collectively known as STIP and LTIPP. What each project is accused of The committee’s findings are specific and, in places, fairly damning. Good Entry allegedly distributed 142,839 ARB to 1,032 users the committee considers ineligible, with suspected team-linked incentive farming on top of that. Limitless is accused of converting 75,000 ARB into USDC and then moving the proceeds off Arbitrum entirely onto Base, a rival Layer 2. APX Finance, formerly known as ApolloX, faces the heaviest allegations: 239,714 ARB linked to unreturned funds, delayed distributions, and suspected Sybil activity, where one actor controls many wallets to game reward systems. Add those up and the disputed amount across all three ...