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Arbitrum DAO freezes the $71 million worth of ETH stolen by North Korean hackers from KelpDAO, and the New York Federal Court has issued an injunction, requiring the DAO not to move this money, to be used to compensate American victims of North Korean terrorism and kidnapping cases over the past decades.
The court considers Arbitrum DAO as a "partnership," confirming service of process as valid, and if not cooperating, it could be held in contempt of court, with core members potentially held accountable.
Decentralization still has to bow before the law in reality... Crypto is becoming more and more practical.
👉🏻 So, could the court also pursue the funds currently "held" by AAVE in DeFi United?
• Currently, the funds AAVE holds in DeFi United are mainly "new donations," not hacker proceeds:
• These are voluntary commitments from the Aave DAO treasury and other protocols, legally considered legitimate funds, unrelated to the North Korean terrorism ruling.
• The U.S. plaintiffs are currently targeting assets that can be clearly traced back to DPRK/Lazarus Group (garnishment).
Once the funds are mixed into DeFi United and used for legitimate recovery purposes, it will be difficult to claim they are "North Korean assets."