AAVE ETH Freeze: Aave Seeks Court Order to Unlock $71M
Arbitrums Security Council later froze 30,766 ETH linked to the exploit. The purpose of the action was to prevent further movement and save money to work out the recovery plan. Then Aave, KelpDAO, and others engaged in a DeFi United process to regain support and provide compensation to the affected users. The problem changed when plaintiffs in a separate North Korea-related case obtained a restraining notice. That order blocks Arbitrum DAO from transferring the ETH. Aave says the freeze now harms users whose assets were stolen, recovered, and meant for restitution. Court Order Puts Arbitrum DAO Under Legal Pressure Aaves motion asks the Southern District of New York to vacate the notice or grant temporary relief. The company argues that a thief does not gain legal ownership by moving stolen assets on-chain. It also says blockchain transfers show movement, not a valid title. The filing challenges the claim that the funds can satisfy judgments against North Korea. Aave argues the theory depends on attribution, not a court finding that North Korea owns the ETH. That matters because New York enforcement rules usually require a direct debtor interest in the property. The case also raises a bigger question for DeFi governance. The court treated Arbitrum DAO