By Tuesday afternoon, North Korea had started laundering. The window was hours. What happened next had never been done on a major L2.

Arbitrum’s security council upgraded its L1 inbox contract, injected a transaction as if the hacker’s address had sent it, moved $70M to a rescue address, and upgraded the contract back.

From the chain’s perspective: a valid state transition. From the DeFi community’s perspective: a line crossed that can’t be uncrossed.

Kain Warwick of Infinex and Synthetix, Taylor Monahan, security expert, Luca Netz of Pudgy Penguins and Odysseas Lamtzidis walk through the exact mechanism, why Taylor still didn’t think it was going to work even as it happened, and what it means that nine of twelve people agreed to sign in a space where you can’t normally get two DeFi people to agree on anything.

Plus: Griff’s quote, the property rights debate, and why Kain calls this the watershed moment.

This clip is from a longer conversation on the Kelp DAO hack, the Arbitrum intervention, and the future of DeFi governance. Full episode here: https://youtube.com/live/mr7I69N_UTE

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