U.S. Judge delays hearing on Aave's request to unfreeze $71 million stolen ETH

ME News Report, May 14 (UTC+8),
U.S. New York Judge Margaret M. Garnett postponed a ruling on Aave’s emergency application on Wednesday,
which aims to unfreeze $71 million worth of ETH related to the Kelp DAO hacking incident,
and requested both parties to submit supplemental briefs before the hearing on June 5.
Aave is attempting to recover the $71 million ETH frozen on Arbitrum to assist in asset recovery from the hacking incident.
The Kelp DAO hack resulted in losses of $293 million.
U.S. law firm Gerstein Harrow LLP filed a restraining order with the court in early May,
claiming their client has rights to the aforementioned funds.
Aave then filed an emergency motion to lift the freeze,
stating that if the funds are not released promptly, it could trigger user liquidations and potentially impact the DeFi market.
Judge Garnett noted in her ruling that Aave failed to sufficiently explain how “compound interest losses” would occur if the restraining order remained in place.
She also acknowledged the case’s complexity and the risks faced by victims,
and asked both sides to provide additional statements on six key issues.
Both parties must submit supplemental briefs by May 22.
Meanwhile, the overall compensation process for Kelp DAO is progressing.
Kelp and Aave announced on Tuesday that the hacker-held rsETH has been burned on Arbitrum,
and approximately $278 million worth of lost tokens will be recovered over the next two weeks through the Aave Recovery Guardian multisig wallet.
Once the related smart contracts are reactivated, all functions of rsETH will return to normal.
(Source: ODaily)