Overview
- Aave LLC filed an emergency motion Monday in the Southern District of New York to vacate a restraining notice or require a $300 million bond that is locking 30,765 ETH worth about $71 million.
- The restraining notice was served May 1 by Gerstein Harrow LLP and it bars Arbitrum DAO from moving 30,766 ETH that its Security Council froze after the April 18 KelpDAO rsETH bridge exploit.
- Plaintiffs holding more than $877 million in terrorism judgments argue the funds qualify as DPRK property due to an alleged Lazarus Group link, which Aave disputes as unproven and contrary to basic rules that stolen assets remain the victims’ property.
- DeFi United’s recovery plan has raised over 137,700 ETH to restore rsETH holders and an Arbitrum governance vote runs through May 7, yet no transfer can occur under the court order and affected users still cannot reclaim funds.
- The outcome could set a precedent for DAO emergency actions because moving hacked assets into a governance-controlled wallet made a clear target that traditional courts can reach.