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TL;DR on the Aave/Arbitrum/Lazarus mess ↓
April 18: Kelp exploit hits. Bad rsETH/wrsETH collateral creates debt across Aave and Compound.
April 21: Arbitrum freezes ~30,766 ETH linked to the attacker.
April 24/25: Aave + DeFi United coordinate a recovery plan to freeze the funds, recover assets, and prove ecosystem support to cover the shortfall.
May 1: A law firm serves Arbitrum DAO with a restraining notice, trying to block the frozen ETH from moving into recovery.
Their argument is that if the ETH is tied to North Korea/Lazarus, then people who already won lawsuits against North Korea should be able to claim it first.
But the issue is that no court has actually proven North Korea or Lazarus executed the hack.
May 4: Aave filed an emergency motion asking the court to remove the restraining notice so the frozen ETH can be released for recovery.
This has turned into a circus.
But I side with Aave here. A thief doesn't gain lawful ownership of stolen property by stealing it.