Judge Unblocks $71M in ETH from Kelp DAO Exploit for Aave Transfer, North Korea Creditors Retain Claim

Judge Margaret Garnett of the U.S. District Court for the Southern District of New York partially unblocked 30,766 ETH frozen since May 1 on Friday, allowing an onchain governance vote to transfer the assets to Aave. The modification permits delegates to initiate and vote on the transaction without violating the restraining notice. However, the funds remain subject to the freeze if terrorism judgment creditors ultimately prevail in their claim that the ETH qualifies as North Korean property under the Foreign Sovereign Immunities Act and Terrorism Risk Insurance Act. Arbitrum delegates voted Thursday to approve the release, with 182.2 million ARB tokens supporting the measure and approximately 91% voting power in favor.