⚠ JUST IN: U.S. federal court approved transferring roughly $72 million in frozen Ether linked to the April 2026 Kelp DAO hack, allegedly tied to North Korea's Lazarus Group (🇰🇵).

Attackers exploited rsETH valuation and collateral mechanics on Arbitrum to borrow excessive ETH from Aave without sufficient backing, draining liquidity and creating undercollateralized debt across DeFi pools.

A recovery coalition (Aave, Kelp DAO, LayerZero, EtherFi) proposed redistributing assets to victims but faced legal opposition from attorneys representing North Korean terrorism victims seeking seizure for judgments against Pyongyang (🇰🇵). A Manhattan (🇺🇸) judge ruled the transfer could proceed, releasing approx. 30,766 ETH ($72,450,327.30) for recovery, though broader legal questions remain.

The case is a landmark for DeFi, DAO governance, and asset recovery, highlighting court influence over DAO funds and decentralization limits.

@arch