CoinDesk reported that Aave (AAVE) and Kelp DAO hacking victims have submitted an Arbitrum governance proposal to transfer 30,765 ETH (approximately $71 million), which was frozen, to an Aave LLC address. The vote will begin on the 15th (local time). This proposal implements a recent court order from US Manhattan Judge Margaret Garnett, stating that even after the transfer, the funds cannot be used, transferred, or operated without court approval. Blockchain analytics firms suspect the hacking incident was carried out by the North Korean hacking group Lazarus Group, and lawyers representing families of North Korean terror victims claim that since approximately $877 million in compensation judgments against North Korea remain unpaid, the frozen funds could be used for compensation if finally determined to be linked to North Korea. Aave maintains that the ETH belongs to the hacking victims, not the hackers, thus escalating into an ownership dispute between DeFi victims and terror judgment creditors. Meanwhile, these creditor groups have filed a separate lawsuit alleging that the privacy protocol Railgun DAO allowed the movement of North Korean-linked funds.
