New York court pauses decision on Aave’s $71M ETH recovery request
A New York federal judge has postponed a decision on Aaves request to release $71 million in frozen Ethereum tied to the Kelp DAO exploit, ordering both sides to submit additional legal arguments before a June hearing.A New York judge delayed a ruling on Aaves bid to release $71 million in frozen ETH tied to the Kelp DAO exploit.The court asked Aave and Gerstein Harrow LLP to submit additional legal arguments before a June 5 hearing. According to filings submitted Wednesday in the Southern District of New York, Judge Margaret M. Garnett said Aave LLC had not sufficiently explained how “compounding losses” to users would occur if the restraining notice on the funds remained active. The judge scheduled another hearing for June 5 and directed both parties to file supplemental briefs by May 22. At the center of the dispute is 30,765 ETH that Arbitrums Security Council froze on April 21 after tracing the assets to the April 18 Kelp DAO exploit. The attack targeted Kelps LayerZero-powered bridge and allowed hackers to mint unbacked rsETH, which was later used as collateral on Aave v3 to borrow an estimated $230 million in wrapped ETH. Earlier reports tied the exploit to roughly $190 million in