ArbitrumDAO's Watchdog Committee is seeking permanent exclusion of Good Entry, Limitless and APX Finance from future DAO programs following investigations into grant use. The Defiant reports that the committee classified all three cases as high severity and associated 142,839 ARB with Good Entry, 75,000 ARB with Limitless and 239,714 ARB with APX Finance, totaling 457,553 ARB.
The committee says Good Entry distributed part of its grant to users who did not meet program requirements, with onchain analysis also pointing to possible self-farming by wallets linked to the team. Limitless allegedly swapped its entire 75,000 ARB allocation into USDC and bridged the proceeds to Base. The APX Finance case covers unspent treasury funds, delayed transfers to distribution contracts and a wallet cluster the investigation linked to team addresses.
The proposal goes beyond recovering funds. It would create a lasting exclusion from future ArbitrumDAO programs for projects, founders, current team members and affiliated contributors. At the time of The Defiant's report, none of the three projects had replied to the relevant governance-forum thread. If explanations are not accepted and funds are not returned, the committee's process calls for a separate Snapshot vote on each project.
The Watchdog Program was created to investigate misuse tied to earlier Arbitrum incentive programs. The proposal says that by Sept. 2 it had received 90 reports, recovered about 532,000 ARB for the DAO and distributed roughly 268,000 ARB in reporter bounties. The committee's recommendation is therefore a governance proposal, not an already effective ban; the final decision would come through the community voting process.