Arbitrum Security Council member: Aave is too permissive with liquid staking tokens.

Griff Green, a member of the Arbitrum Security Council, is calling out lending protocols like Aave for being too relaxed in how they handle liquid staking tokens — arguing that the underlying technical risks are being systematically underweighted.

Green's deeper concern, however, goes beyond LST collateral policy. He argues the industry's most pressing threat is no longer smart contract bugs but operational security failures — leaked private keys, social engineering, and inadequate internal controls. North Korean state-linked hackers, he notes, are increasingly exploiting these gaps through targeted social engineering rather than code exploits.

The call is for crypto firms to close the gap with mature tech companies on security operations — a standard the industry has largely deferred while chasing growth.