New York court orders Arbitrum DAO to freeze $71 million worth of ETH, or use it to compensate victims of North Korea-related cases

ChainCatcher News: MegaETH director PaperImperium disclosed on the X platform that documents from the U.S. Federal Court for the Southern District of New York show that the court has issued a restraining order against Arbitrum DAO, requiring it not to transfer approximately $71 million worth of ETH assets previously frozen in the KelpDAO hack incident.

The plaintiff is attempting to use these funds to satisfy outstanding judgment compensation related to cases involving terrorism, kidnapping, and other matters that have involved North Korea over the years, and has applied to serve Arbitrum DAO with legal notice via alternative service, treating it as a “partnership organization” that can be held accountable. The court documents also note that Arbitrum DAO has a Security Council governed by ARB holders, which has the ability to take action in emergency situations; therefore, relevant members who refuse to cooperate may face legal liabilities such as contempt of court. The market believes this case may become an important example of the U.S. judicial system directly regulating DAO governance structures, further highlighting the compliance pressure faced by DeFi protocols within the real-world legal framework.