Long live US court - the most based court in the world!

[zasad@]

Court Order Freezes $73M ETH Linked to Kelp DAO Exploit
US law firm moves to block transfer of $73M frozen ETH tied to the Kelp exploit, citing $877M judgments against North Korea.
https://coincentral.com/court-order-freezes-73m-eth-linked-to-kelp-dao-exploit/

"A US law firm filed a restraining notice to block the transfer of frozen Ether linked to the Kelp exploit.
A New York district court approved three writs of execution against the Arbitrum DAO.
The firm claims its clients are owed more than $877 million in damages by North Korea.
The Arbitrum Security Council froze 30,766 ETH worth over $73 million after the Kelp DAO hack.
Aave Labs proposed unfreezing the funds to compensate victims through DeFi United.
An Arbitrum DAO member argued that blocking the funds would harm victims of the Kelp exploit."

___
Math isn't mathing. The Lazarus Group’s involvement in the hack has not been proven; it is merely a hypothesis.

[yhiaali3]

"Aave" asserts that this claim is unsubstantiated, and that "“A thief does not legally own what he steals" This is indeed a strong argument; even if it were proven that Lazarus was indeed responsible for the hack, how could the claimant company be compensated with money Lazarus allegedly stole from Kelp DAO? This is bizarre, and I suspect it's illegal.

The most likely scenario will be that the freeze will be lifted and the money returned to the victims after the next court hearing because "Aave" based its case on the American legal principle that a thief does not acquire ownership of stolen goods.

[zasad@]

"Aave" asserts that this claim is unsubstantiated, and that "“A thief does not legally own what he steals" This is indeed a strong argument; even if it were proven that Lazarus was indeed responsible for the hack, how could the claimant company be compensated with money Lazarus allegedly stole from Kelp DAO? This is bizarre, and I suspect it's illegal.

The most likely scenario will be that the freeze will be lifted and the money returned to the victims after the next court hearing because "Aave" based its case on the American legal principle that a thief does not acquire ownership of stolen goods.

Aave Labs is representing Kelp DAO, Arbitrum DAO, and other similar companies. Gerstein Harrow LLP is representing other victims. The trial is an adversarial process, but it's very difficult to predict what the court will decide or how long the process will last. 30,766 ETH is a large sum, and I'm not sure Gerstein Harrow will give up easily.

[yhiaali3]

Aave Labs is representing Kelp DAO, Arbitrum DAO, and other similar companies. Gerstein Harrow LLP is representing other victims. The trial is an adversarial process, but it's very difficult to predict what the court will decide or how long the process will last. 30,766 ETH is a large sum, and I'm not sure Gerstein Harrow will give up easily.

Yes, the amount is worth it and Gerstein Harrow will not give up easily, but if it can be proven through blockchain analysis that the funds left the Kelp DAO contract via Aave on Arbitrum to the attacker's address and were then frozen by the Arbitrum Security Council, this will make ownership very clear.

But I don't know if the judge would accept blockchain analysis as legal evidence.

[zasad@]

Aave Labs is representing Kelp DAO, Arbitrum DAO, and other similar companies. Gerstein Harrow LLP is representing other victims. The trial is an adversarial process, but it's very difficult to predict what the court will decide or how long the process will last. 30,766 ETH is a large sum, and I'm not sure Gerstein Harrow will give up easily.

Yes, the amount is worth it and Gerstein Harrow will not give up easily, but if it can be proven through blockchain analysis that the funds left the Kelp DAO contract via Aave on Arbitrum to the attacker's address and were then frozen by the Arbitrum Security Council, this will make ownership very clear.

But I don't know if the judge would accept blockchain analysis as legal evidence.

The judge is not a blockchain expert, so renowned experts will be brought in for the civil case.

According to statistics, these types of cases can take several years to resolve, which would be extremely damaging for Kelp DAO and their partners. I'll be keeping an eye on how this case plays out.

[smithcohn12]

From what I’ve seen in crypto cases, freezing funds like this can protect assets temporarily, but dragging legal battles into DeFi often ends up delaying compensation and hurting the very victims it’s supposed to help.

[zasad@]

From what I’ve seen in crypto cases, freezing funds like this can protect assets temporarily, but dragging legal battles into DeFi often ends up delaying compensation and hurting the very victims it’s supposed to help.

Haven't you realized yet that lawyers don't care about victims? In this case, only the interests of lawyers and their clients are important.

The New York Federal Court postponed the hearing on the case of frozen ETH until June 5, 2026
https://financefeeds.com/new-york-judge-delays-hearing-on-aave-request/

Soon we will again watch how justice prevails in the DeFi sector