Cointelegraph reported that the U.S. law firm Gerstein Harrow LLP has filed a lawsuit seeking to seize 30,766 ETH ($73 million) frozen by Arbitrum (ARB) after the Kelp DAO hacking incident. Gerstein Harrow's clients claim they are entitled to over $877 million in compensation, having won three separate lawsuits against North Korea following past hacks attributed to North Korea. They argue that since they won the lawsuits against North Korea, the funds frozen by Arbitrum also belong to them. Accordingly, a New York court reportedly approved a restriction and enforcement order prohibiting Arbitrum from moving the said funds. Kelp DAO suffered a $292 million hacking loss on the 18th of last month, and the Arbitrum security council had frozen 30,766 ETH linked to the hacker's address. Arbitrum had planned to transfer these funds to DeFi United, a relief fund for hacking victims, to compensate users, but this lawsuit raises the possibility of delays in the fund recovery process. Gerstein Harrow had previously filed a similar lawsuit during the Bybit hack. Arbitrum stated that "this seizure action delays the return of victim funds" and expressed its position that it is unjust.
