The event of Arbitrium freezing North Korean hacker funds has taken a more dramatic turn.

A Federal Court in New York, United States, has issued a ruling requiring Arbitrium to use the frozen funds to compensate a group of Americans who were persecuted by North Korea.
The logic behind this comes from the fact that, over the past several decades, North Korea’s acts—such as terrorism, kidnapping, and illegal detention—have faced large numbers of collective lawsuits brought by victims with American nationality. But the North Korean government has never proactively paid compensation, so these plaintiffs began searching worldwide for assets belonging to North Korea and asked the U.S. government to assist in seizure for compensation. There have already been many successful cases. The most well-known is in 2017, when an American college student, Otto, was arrested and ultimately died after taking a poster during a trip to North Korea. His parents sued North Korea and won, receiving $500 million in damages. After North Korea ignored the case, the U.S. government directly intercepted and auctioned a large North Korean cargo ship, using the proceeds for compensation.
This time, after North Korean hackers’ funds stolen from AAVE were frozen by Arbitrium, these plaintiffs believed the money belongs to North Korean assets and should rightfully be theirs. The U.S. court immediately stepped in again: as the first step, it requires Arbitrium to cooperate, properly secure the funds, and wait for the next instructions, with absolutely no misappropriation. The ruling characterizes the Arbitrium DAO as a partnership and confirms the effectiveness of service of the legal documents. If Arbitrium does not cooperate, it will face charges of contempt of court, and the core voting members within the DAO may also be subject to compulsory measures.
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