Aave dismisses restraining notice for rescued funds as finders keepers
DeFi lending platform Aave has filed an emergency motion to vacate a request to seize $71 million worth of ether rescued by Arbitrum‘s Security Council following April’s $290 million Kelp DAO hack. It claims the restraining notice “is causing immediate harm, right this very moment, to blameless third parties,” i.e. Aave users affected by the hacks fallout. Law firm Gerstein Harrow filed the restraining notice on May 1, claiming that the stolen funds seized by “potential garnishee” Artbitrum are, in fact, North Korean property. The firm requested funds be turned over to “collect unpaid judgements” owed to their clients who had previously been awarded damages, which North Korea hasnt paid. Gerstein Harrow has previously taken action against a range of crypto projects, often seeking to stake a claim to North Korea-linked funds. Kelp DAO hacks effects on Aave April 18s Kelp DAO hack exploited Layer Zeros bridging infrastructure to fraudulently release $290 million rsETH tokens. The hackers, suspected to be North Koreas notorious Lazarus Group (due to on-chain connections to ByBit and BTC Turk hacks), borrowed $236 million of WETH against the stolen rsETH on Aave. With outstanding loans made against partially unbacked collateral, Aave faced between $124 million and $230 million worth of bad debt. Arbitrum Security Councils