Arbitrum Faces Request to Release $71M Frozen Ethereum

A group of decentralized finance participants have called on the Arbitrum DAO to unfreeze a significant amount of Ethereum. The proposal aims to release $71 million in frozen ETH that was previously tied up following a major hack involving rsETH.

The funds were frozen after the hack, which resulted in losses worth over $292 million. The affected assets are currently held in a 2-of-3 multisig wallet controlled by Aave, KelpDAO, and Certora. If released, the funds would be used to support a new 'DeFi United' recovery plan.

The proposal also details the exploiter's position in Aave markets, which shows that they provided rsETH as collateral and borrowed other assets. The attack did not breach Aave's smart contracts, but rather an external issue.