Arbitrum DAO Receives Court Approval for DeFi Recovery Effort

A recent court ruling has paved the way for Arbitrum DAO to transfer a significant portion of its frozen ether holdings to Aave LLC, marking a key development in the ongoing DeFi recovery effort.

The decision, handed down by Judge Margaret Garnett of the Southern District of New York, modifies an earlier restraining notice that had locked the funds inside Arbitrum since May 1. The modified order allows for an on-chain governance vote to send the frozen ether to an Aave-controlled wallet.

The ruling resolves a pressing concern among Arbitrum's delegate base, with 182.2 million ARB tokens in favor of releasing the funds, representing roughly 91% of voting power. However, the legal dispute over the ETH remains ongoing, with terrorism creditors retaining their claim over the funds under the Foreign Sovereign Immunities Act and the Terrorism Risk Insurance Act.