Aave Clears Path to Recover $71 Million in Ether Linked to North Korea Hack

A Manhattan federal judge has made a crucial decision in the ongoing recovery efforts of Aave, allowing the company to proceed with its plan for $71 million in ether tied to a North Korea-linked exploit. The ruling modifies a prior freeze on the assets, permitting them to be moved off Arbitrum while preserving terrorism victims' legal claims.

The move is part of a broader effort by terrorism judgment creditors to seize North Korea-linked crypto assets. This includes a separate lawsuit targeting Railgun DAO and Digital Currency Group over allegedly facilitating the movement of DPRK-controlled funds.

Arbitrum delegates had previously signaled support for returning the frozen ETH as part of Aave's recovery plan in an off-chain Snapshot temperature check. The actual transfer, however, still requires a separate binding onchain governance vote.