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Arbitrum Sets Binding Vote To Transfer $71 Million in Frozen ETH to Aave

A judge’s order permits the DAO vote under continuing court control of the disputed ether.

Overview

  • A binding Arbitrum Improvement Proposal launched Tuesday, May 12, would move 30,765 ETH worth about $71 million to an Aave LLC wallet, with token holders set to begin voting May 15.
  • Judge Margaret Garnett modified a restraining notice to allow the vote, and the creditors’ claims keep the ether locked pending further rulings.
  • Kelp DAO and Aave burned 117,132 of the attacker’s rsETH on Arbitrum and began a two‑week refill plan that aims to reopen withdrawals shortly after the first tranche.
  • Mantle DAO approved a 30,000 ETH loan as a backstop, joining more than $300 million in pledged support that targets the rsETH backing gap and helps affected users recover access to funds.
  • The April 18 exploit abused a LayerZero bridge setup to mint unbacked rsETH and use it as collateral on Aave, producing about $190 million in bad debt and drawing forensic reports that link the hack to North Korea’s Lazarus Group without a court finding.