Judge Allows Aave to Transfer $71 Million in North Korea-Linked Ether

A Manhattan federal judge has cleared the path for Aave to transfer $71 million in ether linked to a North Korea hack, while preserving the claim of terrorism victims.

The ruling allows Arbitrum governance to vote on transferring the funds to an Aave-controlled wallet, which would enable the company to proceed with its recovery plan. This move is part of a broader effort by terrorism judgment creditors to seize North Korean-linked crypto assets.

The judge's order modifies a prior freeze and shields participants from liability under the restraining notice.