Something has happened to Arbitrum. A lawyer appearing on the forum has applied to the DAO through a court order to prevent the release of 30,765 ETH that was frozen after the rsETH shortfall. The reason is interesting: they claim these funds belong to North Korea.

The background of the incident is more complicated. Lawyer Charles Gerstein represents victims of North Korean terrorism. These families have obtained court rulings against Pyongyang for decades but have never received payment. The 1972 Lod Airport Massacre, the kidnapping of Pastor Kim Dong Shik, North Korea’s arms support during the 2006 Israel-Hezbollah war... Victims of these events are still awaiting compensation.

Gerstein’s argument is this: since U.S. authorities have linked Lazarus Group to the North Korean state, the frozen ETH could be considered DPRK property under sanctions laws. If the court accepts this, the claims of the victims would take precedence over the rsETH deposit holders’ claims.

However, there are serious objections on the forum. Delegates oppose this. Names like Zeptimus argue that ETH is stolen property and should be returned to its original owners. The legal argument is that a thief cannot acquire ownership rights. From this perspective, holding the frozen funds to protect victims imposes costs on another group of victims.

Caught in the middle are two different victim groups. On one side are crypto investors with positions stuck in Aave. On the other are families harmed by North Korea’s actions, seeking compensation for decades. It’s still unclear which side the Arbitrum DAO will support, but Gerstein’s filing has significantly complicated the process. The delegates’ upcoming decision will be both a legal and an ethical choice.