Aave says about $73 million in frozen ETH tied to the Kelp exploit should be released because Arbitrum’s wallet restrictions are delaying recovery for affected users and rsETH markets.
A legal dispute in the U.S. District Court for the Southern District of New York continues over roughly 30,765-30,766 ETH frozen after the April 18 rsETH/Kelp exploit, with reported values ranging from about $71 million to about $73 million. Aave said it filed an emergency motion in federal court seeking to lift restrictions on the funds, arguing that Arbitrum’s freeze on wallets holding the ETH is hampering recovery for affected Kelp users and rsETH markets. The existing case also involves creditors with $877 million in default judgments against North Korea, who are seeking to block transfers and argue the exploit was linked to Lazarus and other Democratic People’s Republic of Korea-linked hackers. Aave maintains the ETH was set aside for victim compensation and should not be treated as property of the alleged attacker.