Overview
- Arbitrum delegates approved in a non-binding vote Friday the release of 30,765 ETH, about $71 million, that its Security Council froze in April for transfer to a recovery wallet controlled by Aave, Kelp DAO, Certora and EtherFi.
- A restraining notice filed in New York federal court is contesting any movement of the frozen ETH, and any later on-chain transfer would face Arbitrum’s standard roughly eight-day delay that could allow further court action.
- Aave said it finished liquidating the attacker’s remaining rsETH-backed positions on Ethereum and Arbitrum on Wednesday and moved the recovered collateral into the DeFi United Recovery Guardian multisig without using user funds or triggering its Umbrella backstop.
- DeFi United’s pool has grown past $300 million yet remains about 10% short of the Ether needed to fully restore rsETH’s backing, with additional pledges still awaited from Circle, Ethena, Frax and Kraken-backed Ink.
- The April 18 breach exploited a single-verifier LayerZero bridge to mint 116,500 unbacked rsETH, a token that represents restaked Ether, which the attacker used as collateral to borrow wrapped ETH and leave more than $190 million in bad debt across lending markets.