NY Judge Delays Aave's Request to Unfreeze Kelp DAO Hack Assets

A New York federal judge has delayed Aave's request to unfreeze $71 million in Ethereum (ETH) tied to the Kelp DAO hack. The delay comes as the court seeks additional information from both parties before making a decision.

Judge Margaret M. Garnett of the U.S. District Court for the Southern District of New York has ordered supplemental briefs from Aave and Gerstein Harrow LLP, the law firm that filed the restraining notice. The briefs are due by May 22, with the next hearing scheduled for June 5.

The frozen assets include 30,765 ETH, which is part of recovery efforts to restore backing for rsETH, a liquid restaking token affected by the hack. Aave has argued that continued restrictions could trigger user liquidations and create pressure across decentralized finance (DeFi) markets.