Arbitrum Changes Asset Transfer Contract After Binance Hack

An incident occurred on the Arbitrum network, sparking intense community reaction. On October 30, the Security Council temporarily modified a system smart contract in response to the Binance hack.

This change enabled the forced transfer of assets worth $30.5 million without access to owners' private keys. The transferred funds included 8,425 ETH and 74.6 million ARB tokens.

Decentralization

Users expressed concern that the freeze mechanism might be applied not only to attackers but also to ordinary cryptocurrency holders. Questions arose regarding how decentralized the network truly is.

Critics point out that the ability of a small group of participants to move others' assets calls into question the project's decentralization principles.