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Wow, the matter of Arbtrium freezing funds tied to North Korean hackers has taken an even more dramatic turn: the U.S. Federal Court in New York has issued a ruling requiring Arbtrium to compensate the frozen funds to a group of Americans persecuted by North Korea. 🤣The background is that over the past several decades, because of acts such as terrorism and kidnapping and illegal detention, North Korea has faced class-action lawsuits from many people who hold U.S. citizenship. But the North Korean government has never voluntarily paid compensation, so these plaintiffs have searched worldwide for assets belonging to North Korea and then sought for the U.S. government to seize and compensate them. There have been many successful cases before. The most famous is the 2017 case in which an American college student, Otto, was arrested and eventually died tragically after he stole a poster while traveling in North Korea. After his parents sued North Korea and won, a U.S. court ordered North Korea to pay $500 million in compensation, but North Korea ignored the order. In the following years, the U.S. government intercepted a large North Korean cargo ship, auctioned the ship, and then sent the proceeds to his parents.
Now, after North Korean hackers stole this money from AAVE and it was frozen by Arbitrum, these litigants argue that the money belongs to North Korea and should be compensated to them. So the U.S. court took swift action again. The first step was to require Arbitrum to cooperate in safeguarding the funds pending further instructions from the court, with no movement allowed in the meantime. The ruling characterized the Arbitrum DAO as a partnership and confirmed the validity of service. If they fail to comply, they will be charged with contempt of court, and specific members, such as the core voters in the DAO, will face coercive measures.