Judge allows Arbitrum DAO to transfer $71 million in ETH to Aave

Filipino

A federal judge in New York has permitted Arbitrum DAO to move $71 million in frozen ether to Aave. The order preserves the legal claims of terrorism victims against the funds tied to a North Korea-linked hack.

Judge Margaret Garnett issued the two-page order late Friday, modifying a prior restraining notice on Arbitrum DAO. The ruling enables an onchain governance vote to transfer the immobilized ETH to an Aave-controlled wallet and protects participants in that vote from liability under the notice.

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Dramatic courtroom scene depicting lawyers arguing over frozen Ethereum coins from Kelp DAO hack amid terrorism claims.
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A federal case is unfolding over $71 million in frozen cryptocurrency following the Kelp DAO exploit, as Aave seeks to release the funds for DeFi recovery. Victims of decades-old North Korean terrorist acts have filed a restraining notice against Arbitrum DAO, claiming the 30,765 ETH as DPRK-linked property. The dispute pits recent hack victims against long-standing terrorism judgment holders.

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