Jack Paul 
Arbitrum’s Watchdog Committee has given three DeFi projects until a tentative Sept. 10 deadline to respond to high-severity findings and return unresolved funds. The projects are Good Entry, Limitless and APX Finance, formerly ApolloX. The committee says each could face a separate vote on permanent exclusion from future DAO programs if the response is unsatisfactory and the funds are not returned.
No ban has been approved. The combined figure mentioned in the proposal is 457,553 ARB, but that total mixes different findings. It is not one established amount that was stolen, outstanding or recoverable. As of Sept. 5, no response from any project had appeared in the proposal thread.
Good Entry and Limitless
Good Entry’s case centers on 142,839 ARB. The committee says on-chain analysis found that amount went to 1,032 ineligible users during and after the Short-Term Incentives Program. It also alleges self-farming by wallets connected to team addresses and says the project refused to provide clarification. Good Entry’s grant application requested 200,000 ARB, so the watchdog figure covers part of the grant and describes distributions rather than a remaining balance.
Limitless faces a separate finding. The committee says 75,000 ARB was swapped into USDC and moved to Base. Team members could not be reached for clarification or recovery. That figure matches the 75,000 ARB requested in the project’s LTIPP application.
The APX Finance case is harder to summarize
APX Finance’s number is less easy to reduce to a repayment amount. The committee tied 239,714 ARB to overlapping issues, including a substantial portion left unused in treasury addresses. It also cited late transfers to distributor contracts and possible Sybil activity by team-linked wallets. APX Finance requested 525,000 ARB, but the proposal does not break down the 239,714 ARB by issue.
What an exclusion vote would change
Each project would face its own off-chain Snapshot vote. A ban on an operating project would cover founders, current team members and affiliated contributors. For a project that is no longer operating, it would apply only to founders.
The votes would require no on-chain action. Their stated consequence is that covered projects or people become ineligible for future Arbitrum DAO programs. In practice, this is a governance access sanction. It would not freeze wallets or disable a protocol.
The watchdog says the broader program had received 90 reports as of Sept. 2, recovered about 532,000 ARB and distributed about 268,000 ARB in reporter bounties. The next signal is whether any of the three projects answers before Sept. 10. If not, the committee may move ahead with its tentative Snapshot timetable.