Overview
- Arbitrum delegates approved releasing 30,765 ETH on Friday in a snapshot vote with about 91% support, and any transfer still needs a binding onchain proposal plus an eight-day withdrawal wait.
- Aave said Wednesday it finished liquidating the exploiter’s rsETH-backed positions on Ethereum and Arbitrum and moved the recovered collateral to the DeFi United Recovery Guardian wallet.
- The frozen ETH is under a U.S. restraining notice filed by Gerstein Harrow, and Aave asked a New York court on May 4 to lift it, saying no court has found the exploit tied to North Korea’s Lazarus Group.
- The recovery pool has raised over $300 million yet remains roughly 10% short of the Ether needed to fully restore rsETH’s backing while it awaits formal commitments from Circle, Ethena, Frax, and Kraken’s Ink network.
- The April 18 breach used a single-verifier LayerZero bridge to mint 116,500 unbacked rsETH that was posted as collateral, which left Aave with more than $190 million in bad debt before Arbitrum’s Security Council froze 30,765 ETH on April 21.