The courts have now opened for the $71 million worth of ETH frozen following the Kelp DAO hack. Aave has filed an urgent application with a New York federal court demanding the return of these funds to their users.


The events unfolded as follows: Following the April 18th $292 million rsETH exploit, the Arbitrum Security Council successfully froze 30,766 ETH linked to the attacker. Just as the funds were about to be returned to the victims, the US law firm Gerstein Harrow LLP intervened. Citing a total of $877 million in terrorism damages awarded against North Korea in 2010, 2015, and 2016, the firm obtained a restraining order on May 1st. Their reasoning was that the attack was allegedly linked to the Lazarus Group, therefore the frozen assets should be considered North Korean property.
Aave's lawyers have taken a firm stance against this claim. The application states, "A thief doesn't become the legal owner of stolen goods simply because he held them for a few hours," emphasizing that the North Korea claim is based on internet rumors and lacks concrete evidence. Aave also warns that if this restriction continues, protocol users may be unable to meet their collateral obligations, and the risk of chain liquidation could threaten the entire DeFi ecosystem. They are requesting the court to immediately lift the restriction, or if that's not possible, that the plaintiffs deposit $300 million in collateral. An emergency hearing will be held tomorrow.
This case is a first for DeFi. For the first time, the question of who owns the recovered hacked funds is being addressed in a courtroom. Whatever the answer, it will set a precedent that will determine the fate of all future recovery operations.
Justice is served not when those who pursue good find justice, but when those who pursue good find justice.
⚠️Don't Forget to mark Stoploss and manage risk properly.
👉NFA
👉DYOR
#GateSquare #CreatorCarnival
#GateSquareMayTradingShare
ETH-0.07%
AAVE0.7%
ARB2.4%
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The courts have now opened for the $71 million worth of ETH frozen following the Kelp DAO hack. Aave has filed an urgent application with a New York federal court demanding the return of these funds to their users.

The events unfolded as follows: Following the April 18th $292 million rsETH exploit, the Arbitrum Security Council successfully froze 30,766 ETH linked to the attacker. Just as the funds were about to be returned to the victims, the US law firm Gerstein Harrow LLP intervened. Citing a total of $877 million in terrorism damages awarded against North Korea in 2010, 2015, and 2016, the firm obtained a restraining order on May 1st. Their reasoning was that the attack was allegedly linked to the Lazarus Group, therefore the frozen assets should be considered North Korean property.

Aave's lawyers have taken a firm stance against this claim. The application states, "A thief doesn't become the legal owner of stolen goods simply because he held them for a few hours," emphasizing that the North Korea claim is based on internet rumors and lacks concrete evidence. Aave also warns that if this restriction continues, protocol users may be unable to meet their collateral obligations, and the risk of chain liquidation could threaten the entire DeFi ecosystem. They are requesting the court to immediately lift the restriction, or if that's not possible, that the plaintiffs deposit $300 million in collateral. An emergency hearing will be held tomorrow.

This case is a first for DeFi. For the first time, the question of who owns the recovered hacked funds is being addressed in a courtroom. Whatever the answer, it will set a precedent that will determine the fate of all future recovery operations.

Justice is served not when those who pursue good find justice, but when those who pursue good find justice.

⚠️Don't Forget to mark Stoploss and manage risk properly.
👉NFA
👉DYOR
#GateSquare #CreatorCarnival
#GateSquareMayTradingShare
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