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first_img The Arbitrum Committee plans to permanently ban three grant abuse projects

The Watchdog Committee of the Arbitrum ecosystem (composed of Entropy Advisors and others) submitted a proposal to the governance forum on September 3, requesting a permanent ban on the projects Good Entry, Limitless, and APX Finance, as well as their founders, prohibiting their participation in all future ArbitrumDAO initiatives. The committee determined that these three projects engaged in grant abuse within the STIP and LTIPP incentive programs, involving a total amount of 457,553 ARB (approximately $76,000).Specifically, Good Entry received 200,000 ARB in the first round of STIP, of which 142,839 ARB flowed to 1,032 ineligible users, and there is evidence of self-farming by associated addresses, with the team refusing to cooperate with the investigation; Limitless exchanged all 75,000 ARB for USDC and cross-chain to Base, being classified as suspected theft; APX Finance was approved for 525,000 ARB, of which 239,714 ARB involved issues related to funds being held in the treasury, delayed distribution, and witch cluster problems. APX later merged with Astherus and rebranded as Aster, with approximately 70% of its assets located on the BNB Chain.According to the proposal, the three projects may defend themselves in the forum post before September 10. If the explanations are not accepted and the funds are not returned, the committee will initiate three separate Snapshot votes to decide whether to permanently ban the relevant projects and founders.

first_img The SEC plans to establish two compliance channels for cryptocurrencies: over 1,600 projects have cumulatively raised funds of up to $5 million over four years

According to RootData, among 3,244 cryptocurrency projects with financing records spanning no more than four years and amounts that can be accounted for, 1,617 have a cumulative financing amount of no more than $5 million, accounting for 49.8%. The median financing for this batch of projects is $2.5 million, with about 96% recording only one round of financing.In terms of sectors, DeFi, infrastructure, and gaming projects together account for 59.2%, with small-scale financing mainly flowing to protocol development, underlying technology, and consumer applications. However, a quarter of the projects in the sample have already ceased operations, indicating that while lower regulatory thresholds can improve financing efficiency, they cannot replace product demand and sustainable operational capability.Institutional participation is also higher than the market's usual perception of "small projects": 92.9% of the sample has identifiable investor records, and 83.5% disclosed at least two investors. Among them, Animoca Brands, Shima Capital, and Big Brain Holdings participated in 84, 69, and 67 projects, respectively.It is reported that the U.S. SEC officially proposed the "Regulation Crypto Assets" on August 18. The proposal aims to set up two tiers of issuance exemptions: projects can raise no more than $5 million in a single instance within four years; projects with greater financing needs can raise up to $75 million within each 12-month period, but must submit financial statements and fulfill ongoing reporting obligations. The proposal is currently in a 60-day public comment period and has not yet officially taken effect.
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