Arbitrum DAO Approves Release of Approximately $71 Million in Frozen ETH Despite US Court Asset Freezing Dispute

Arbitrum delegates voted with over 90% support to pass a proposal authorizing the release of about 30,765 ETH (worth approximately $71 million) that was frozen by the Security Council following the rsETH vulnerability incident last month (related to the Lazarus organization). These funds will be used for industry recovery efforts led by projects such as Aave, KelpDAO, LayerZero, EtherFi, and Compound to compensate affected users.
This proposal is an Arbitrum constitutional governance proposal (AIP), so the actual transfer will be delayed by at least 8 days. During this period, the Manhattan Federal Court may intervene. Previously, family lawyers representing a party holding a $877 million terrorism judgment against North Korea had served an injunction on Arbitrum DAO, attempting to seize these ETH as North Korean assets. The Arbitrum proposal specifically includes compensation protection clauses for the Foundation, Offchain Labs, Security Council members, and governance delegates to address potential legal risks.
This incident highlights the conflict between decentralized autonomous organization (DAO) governance and traditional jurisdiction. On one hand, the Arbitrum community’s high-support voting reflects a desire for “ecological self-rescue”; on the other hand, disputes over the ownership of funds by US courts introduce significant legal uncertainty for the release action. The final outcome still depends on subsequent court rulings and developments during the 8-day delay period, illustrating the complex challenges faced by cross-border regulation of crypto assets.
The above content is based on publicly available information and is for reference only, not constituting any investment advice or financial opinion. Activities involving crypto assets carry high risks; participation should be cautious and in strict compliance with relevant laws and regulations in Mainland China and Hong Kong.
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