finance
Arbitrum DAO Served Restraining Notice Over Frozen ETH from Kelp DAO Exploit
Families with judgments against North Korea are attempting to claim 30,765 ETH frozen after the rsETH exploit, citing links to DPRK hacking groups. A lawyer served Arbitrum DAO with a restraining notice under New York law to block release of the funds. The move ties to federal actions totaling $877 million in claims from past terrorist acts supported by Pyongyang.
May 4, 7:53 AM·2m read1 source
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A lawyer representing victims of North Korean terrorism has served Arbitrum DAO with a New York restraining notice, seeking to block the release of 30,765 ETH frozen after last month's rsETH exploit. The filing, authored by attorney Charles Gerstein, names Arbitrum DAO as a garnishee in three federal enforcement actions tied to judgments totaling about $877 million against North Korea.
CoinDesk reported that the ether was drained from restaked ETH holders during the April 19 Kelp DAO bridge exploit, marking the largest DeFi hack of 2026.
Families holding these decades-old judgments against North Korea are attempting to seize the frozen funds, invoking alleged links between the attack and DPRK-linked hacking groups such as Lazarus. The restraining notice, served under New York law, could prevent Arbitrum from releasing the 30,765 ETH.
Gerstein's governance post on the Arbitrum DAO forums acts as the formal notice on behalf of three sets of judgment creditors.
The exploit occurred last month, with Arbitrum's Security Council freezing the 30,765 ETH at a specific address on its network following the incident. The April 19 Kelp DAO bridge exploit involved the draining of ether from restaked ETH holders, who held representative tokens locked on another platform for fixed yields.
CoinDesk described it as the largest DeFi hack of 2026, with the frozen assets now at the center of the legal dispute.
One judgment stems from the 1972 Lod Airport massacre in Israel, where gunmen killed 26 people, including 17 Puerto Rican pilgrims. U.S. court found the attack to have been supported by North Korea.
