Court Approves Arbitrum DAO Transfer of $71M Kelp ETH to Aave
A U.S. judge modified a restraining order May 8, enabling Arbitrum DAO to shift 30,766 ETH to Aave LLC. The move aims to compensate Kelp DAO exploit victims while legal battles over North Korean links continue.
- 0130,766 ETH frozen, valued at $71 million as of May 12, 2026
- 0290.5% of Arbitrum DAO voting power supported the transfer on May 8, 2026
- 03Plaintiffs claim over $877 million in unpaid terrorism judgments against North Korea
- 04Estimated rsETH shortfall stands at 76,127 rsETH (~$174.5 million) as of May 12, 2026
What Happened
On May 9, 2026, U.S. District Judge Margaret M. Garnett of the Southern District of New York issued the order modifying a restraining notice, allowing Arbitrum DAO to transfer 30,766 ETH to a wallet managed by Aave LLC bitcoin.com. The frozen funds, valued at approximately $71 million as of May 12, 2026, are tied to the April 18, 2026, Kelp DAO bridge exploit. Ethereum is trading at $2,307 per ETH as of May 12, 2026. The court order explicitly protects participants in the transfer from being deemed in violation of the restraining notice, though the freeze remains in effect on the assets even after they are transferred to Aave LLC CoinNess. Arbitrum DAO previously signaled support for the transfer via a Snapshot vote, with over 90.5% of participating voting power in favor Binance.