A federal judge has allowed Aave to relocate $71 million in ETH that was frozen after a North Korean exploit, but a legal freeze remains attached, giving terrorism victims a continuing claim over the assets.
Arbitrum DAO approved the release of $71 million in frozen ETH to an Aave-led recovery effort, but governance rules delay any transfer for at least eight days, even as U.S. authorities pursue asset seizure.
Aave and major DeFi protocols want Arbitrum to release frozen ETH from the KelpDAO exploit and redirect it into DeFi United, turning emergency recovery into a live governance test.
Arbitrum’s freeze of 30,766 ETH tied to the KelpDAO exploit may have protected users, but it also forced the market to confront how much emergency control a “decentralized” system can really have.
