NY Judge Delays Aave’s Bid to Unfreeze $71M in ETH Amid Kelp DAO Hack Recovery
- A New York judge has postponed a decision on Aave‘s emergency request to unfreeze $71 million in ETH linked to victims of the $293 million Kelp DAO hack.
- The judge, Margaret M. Garnett, requested additional information from both Aave and Gerstein Harrow LLP, which filed a restraining notice claiming rights to the funds.
- Aave argued that failure to unlock the funds could lead to user liquidations and destabilization of the DeFi market.
- The court has set a deadline of May 22 for both parties to submit supplemental briefs, with a hearing scheduled for June 5.
- Recovery efforts are ongoing, with Kelp DAO and Aave working together to restore backing for rsETH after burning the hacker’s assets on Arbitrum.
The case highlights complexities surrounding asset recovery in DeFi environments, particularly when large sums like $71 million are involved amid legal disputes over ownership rights.
With the hearing set for June and critical information due by May, both sides must clarify their positions regarding the frozen assets’ legal status and potential remedies. (Source)
