Arbitrum’s Security Council Can Move a Wallet’s Funds Without Its Key, Binance Freeze Shows

Arbitrum's Security Council froze 8,426 ETH and 74.6 million ARB held in a wallet on Oct. 30, and a Nov. 2 Ethereum Magicians walkthrough describes how the council executed transfers in the holder's name without the private key. The episode shows that Arbitrum's governance-backed emergency powers can override self-custody assumptions on the network. Traders holding ARB or building on Arbitrum should weigh the added centralization risk against the protocol's security guarantees.