A Manhattan court order permits Arbitrum DAO and its delegates to proceed with a binding governance process to transfer $71 million in frozen Ether (ETH) linked to a reported North Korea-related exploit to Aave. Multiple outlets report that the judge modifies a restraining notice so the transfer can occur without being treated as a violation of the existing legal freeze, which follows the assets as the case progresses. CoinDesk and The Block both note that the legal move does not resolve the underlying ownership dispute: North Korean terrorism plaintiffs or “terrorism creditors” continue their efforts in court to establish their claim to the funds. CoinTelegraph similarly reports that the court allows the transfer while preserving the plaintiffs’ ability to pursue their legal interest in the same ETH. The Block adds that the order provides protection for parties who vote on the transfer from liability tied to the restraining terms. While the transfer to Aave is now cleared procedurally, the outlets agree that the ultimate fate of the funds remains contingent on ongoing litigation.
Judge allows Arbitrum to move $71 million in frozen ETH to Aave amid North Korea claims
A Manhattan court order permits Arbitrum DAO and its delegates to proceed with a binding governance process to transfer $71 million in frozen Ether (ETH) linked to a reported North Korea-related explo...
- A Manhattan judge modifies a restraining notice to allow movement of $71 million in frozen ETH tied to a reported North Korea-linked hack.
- Arbitrum DAO delegates begin a binding governance process to transfer the ETH to Aave.
- The court action permits the transfer but preserves terrorism plaintiffs’ ongoing legal claim to the funds.
- The order provides protections for participants voting on the transfer from being deemed in violation of the freeze.
- Despite the clearance for transfer, ownership and final disposition of the ETH are not yet determined.
Arbitrum delegates begin the binding governance process to transfer disputed exploit funds to Aave, while North Korean terrorism creditors continue fighting for ownership in Manhattan court
3 months agoThe order shields anyone who votes on the transfer from being held in violation of the freeze, though the ultimate fate of the funds remains unclear.
3 months agoA Manhattan judge modified a restraining notice to let Arbitrum DAO move $71 million in frozen Ether to Aave, while preserving terrorism victims’ legal claim on the funds.
3 months agoJudge Margaret Garnett allowed frozen exploit funds on Arbitrum to move to Aave, but the legal freeze follows the assets as terrorism plaintiffs continue their claim.
3 months ago
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