Arbitrum DAO Approves $70M ETH Release Amid Court Threat

The Arbitrum DAO has taken a crucial step towards compensating victims of the KelpDAO exploit by approving the release of approximately $70 million in ETH. The proposal, which was co-created by several prominent blockchain companies, received overwhelming support with 90.96% of votes in favor.

However, a federal court order from the Southern District of New York may block the transfer. The plaintiffs, who have decades-old unpaid judgments against North Korea, argue that the frozen ETH constitutes property of the North Korean government and are seeking to seize it.

Aave LLC has filed a brief requesting that the court vacate the restraining order and require the plaintiffs to post a bond of at least $300 million. If the transfer is blocked, the recovery process for KelpDAO victims may be severely impacted.