U.S. Law Firm Challenges Ownership of $73M in Frozen Ethereum After Kelp DAO Hack

A recent lawsuit filed by Gerstein Harrow LLP is challenging the ownership of $73 million in Ethereum frozen by Arbitrum after the Kelp DAO hack. The law firm represents clients who won judgments against North Korea for past hacking incidents, totaling over $877 million. According to court documents, Gerstein Harrow claims that its clients have a rightful claim to the frozen funds.

The lawsuit is a result of the Kelp DAO hack on April 18, which resulted in the loss of $292 million in various cryptocurrencies. Arbitrum's Security Council froze 30,766 ETH to prevent the hacker from moving or laundering the stolen funds. However, Gerstein Harrow's clients argue that their judgments give them priority over the frozen assets.

The court has approved a restraining and execution order, prohibiting Arbitrum from moving the assets. The decision delays the return of frozen funds to Kelp DAO victims, who had expected compensation through DeFi United, a relief fund for hacking victims.