Aave Liquidates Kelp DAO Hacker's Collateral in $293M Recovery Effort

Aave has made significant progress in the recovery effort following the Kelp DAO exploit, with the protocol's liquidation of the hacker's remaining collateral bringing the total amount freed up to around $30.2 million in Ether.

The move is a critical step in the DeFi United recovery plan, which aims to restore rsETH backing and reimburse affected users. Aave Labs announced the liquidation on Wednesday, stating that no user funds were touched during the process.

However, another challenge remains: a restraining notice filed by US firm Gerstein Harrow LLP on Friday. The plaintiffs hold unpaid judgments against North Korea and argue that the attacker was tied to the Lazarus Group, making the funds seizable. Aave has filed an emergency motion to vacate the order.