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The law firm is trying to stop Kelp's attack on freezing ETH transfers, claiming that North Korea owes $877 million in compensation.

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PANews
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3 hours ago
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PANews May 4 news, the American law firm Gerstein Harrow LLP has submitted an injunction to the U.S. District Court in New York, attempting to prevent Arbitrum DAO from transferring 30,766 Ethereum (worth over $73 million) that was frozen due to the $292 million attack incident on the Kelp protocol. The law firm stated that its client obtained default judgments against North Korea in three cases in 2010, 2015, and 2016, demanding compensation and punitive damages totaling $877 million, and claims that its client has a right to claim North Korea-related assets.

Kelp DAO suffered a hacker attack on April 18, and the incident is believed to have been carried out by the TraderTraitor group, part of the North Korean-backed hacker organization Lazarus Group. To protect the victims' interests, the Arbitrum Security Council urgently froze the relevant Ethereum assets.

However, Gerstein Harrow's action may further delay the recovery of funds for Kelp victims. Arbitrum DAO member Zeptimus indicated that if the law firm succeeds in preventing the return of funds, it would shift North Korea's debt onto the victims of Kelp DAO, exacerbating their losses rather than solving the problem.

It is worth noting that Gerstein Harrow has previously made similar claims regarding North Korea-related crypto assets, including claims made in February this year for the funds frozen in the 2023 Heco Bridge attack.

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