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Aave Advances rsETH Recovery Plan After Eight Aave V3 Liquidations

A U.S. judge approved a technical transfer of about $71 million in frozen ETH on Arbitrum to Aave, while keeping the assets legally frozen and preserving civil claims by terrorism victims.

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Fact Check
All key elements of the claim are corroborated by multiple independent sources. The exact ETH figure of 30,765.67 ETH is confirmed by the official Arbitrum Foundation forum thread and multiple news outlets. The ~90.5% support level is confirmed by MEXC news and CoinMarketCap (90.5%) and closely matched by The Block (90.96%). The ~$71M valuation is consistent across sources. The connection to the Kelp DAO exploit and rsETH holders is confirmed by all sources. The claim accurately describes the vote as 'heading toward final on-chain approval' rather than fully executed, which aligns with crypto.news reporting a final on-chain vote still pending and The Block noting a legal court order that may complicate fund movement. The minor discrepancy between 90.5% and 90.96% likely reflects different reporting timestamps during the live vote. No source contradicts the core claim.
Summary

A Manhattan federal judge approved the transfer of about $71 million in frozen ETH on Arbitrum to Aave as part of the rsETH recovery process, but the ruling was described as a technical measure that did not change the assets’ frozen status or the civil claims attached to them. The funds remain tied to allegations of North Korea-linked hacking and are subject to claims by terrorism victims. This adds legal clarity to Aave’s broader recovery effort, which previously involved eight liquidated Aave V3 positions and the planned release of 30,765.67 ETH for victim compensation, while final execution still depends on Arbitrum governance steps referenced in earlier updates.

Terms & Concepts
  • ETH: ETH is the native cryptocurrency of the Ethereum network, used for transactions, fees and collateral across Ethereum-based applications.
  • Aave V3: The third version of Aave’s lending protocol, where users can supply crypto as collateral and borrow other assets.
  • Arbitrum: Arbitrum is an Ethereum layer-2 network designed to process transactions more efficiently while relying on Ethereum for security.