Arbitrum DAO X hack triggers urgent security warning and price impacts

Arbitrum DAO X hack Sparks Alert as ARB Price Shows Resilience

On February 3, 2026, the official X governance account of Arbitrum DAO, @arbitrumdao_gov, suffered a security breach. The Arbitrum DAO X hack incident prompted immediate action from the team, limiting potential harm to users and the protocol.

Source: X official

Official Statements and Response Measures

Arbitrum DAO detected the compromise swiftly and issued a public alert through its primary @arbitrum account. The statement read: "The @arbitrumdao_gov account has been compromised. Do not interact with any links or posts from it until further notice." This message emphasized that the core protocol, funds, and chain operations remained secure and unaffected. 

The team initiated recovery procedures, secured alternative communication channels, and assured stakeholders of ongoing efforts to restore full control. Their prompt transparency helped prevent widespread user exposure.

Token Price Reaction and Broader Market Context

The ARB token experienced a brief decline following the Arbitrum DAO X hack disclosure. It traded at approximately $0.1347 on February 3, falling 1.13% to $0.1331 in early trading on February 4. By mid-morning that day, ARB recovered, rising 2.92% to $0.134 within a daily range of $0.1245 to $0.1342. Trading volume reached $198 million, supporting a market capitalization of $780 million, levels indicative of stability. This minor fluctuation occurred against a weekly drop of 22% from late January, driven primarily by general cryptocurrency market pressures rather than the incident alone. The limited price impact reflects investor confidence in ARB's underlying technology.

Source: CoinMarketCap official

Breach Mechanics, Hacker Actions, and Account Recovery

The attackers likely gained access through phishing tactics or compromised credentials, methods frequently exploited in social media hacks. Once inside, they published posts promoting fictitious "usage rewards" tied to activities such as bridging assets, providing liquidity, or participating in governance votes. A prominent banner declared "Snapshot confirmed!" alongside a link to the fraudulent domain gov-arbitrum.com, designed to prompt wallet connections and steal private keys. The officials issued repeated warnings: "Avoid all content from the compromised account." These alerts, disseminated rapidly, minimized user interactions and financial losses. The governance team regained control shortly thereafter, removed malicious content, and enhanced account protections. Investigations are underway, though no specific framework or individuals have been identified publicly.

Connection to Recent $1.5 Million Exploit

This event follows a prior incident where a compromised deployer account enabled the theft of $1.5 million from Arbitrum-based projects, including USDG and TLP liquidity pools. Attackers deployed malicious proxy contracts, extracted funds, and laundered proceeds through Tornado Cash. That breach highlighted vulnerabilities in administrative keys within Layer-2 ecosystems. They addressed it promptly with upgrades, distinguishing it from the social media compromise, which caused no direct monetary loss. Together, these occurrences underscore persistent risks in decentralized finance, prompting industry-wide improvements in security practices.

Arbitrum DAO's effective handling demonstrates resilience in the face of threats. Further developments will provide additional insights into prevention strategies.

Conclusion: The Arbitrum DAO X hack highlights the growing threat of social media breaches in the crypto sector. While the protocol remained secure, the incident reinforces the need for stronger security practices, user vigilance, and reliance on verified channels to avoid phishing risks.