Catenaa, September 11, 2026-Arbitrum’s Watchdog Committee proposed excluding Good Entry, Limitless and APX Finance from future grants over alleged incentive misuse and reporting failures.
The projects have until a tentative Sept. 10 deadline to answer the findings and return unresolved funds.
Unsatisfactory responses could trigger Snapshot votes seeking permanent exclusion from Arbitrum DAO programs.
No project has been banned, and the discussion proposal would not freeze wallets, disable protocols or execute an onchain penalty.
The committee alleged Good Entry distributed 142,839 ARB to 1,032 ineligible users during and after Arbitrum’s Short-Term Incentives Program.
It also alleged self-farming involving wallets connected to team addresses and said the project declined to clarify the activity.
Limitless allegedly converted 75,000 ARB into USDC and transferred the funds to Base.
The committee said it could not reach the project’s team for clarification or recovery.
APX Finance, formerly ApolloX, faces findings involving 239,714 ARB, including unused treasury funds, delayed transfers and suspected team-linked Sybil activity.
The three figures total 457,553 ARB but represent different findings rather than one confirmed stolen or repayable amount.
Any exclusion affecting an operating project would cover founders, team members and affiliated contributors.
For inactive projects, the restriction would apply only to founders.
The Watchdog Committee said it received 90 reports, recovered 532,000 ARB and distributed 268,000 ARB in reporter rewards by Sept. 2.
The proposal reflects scrutiny of incentive programs that generate liquidity without durable activity.
Affected projects may challenge the evidence before delegates decide whether votes should proceed.
