Arbitrum approves $71 Million ETH release despite U.S. seizure fight

DAO delegates approved releasing exploit-frozen ETH to an Aave-led recovery effort, though Arbitrum’s governance rules delay any transfer for at least eight days What to know : Arbitrum delegates voted with more than 90% support to release about $71 million in ether frozen after the Lazarus-linked rsETH exploit, earmarking the funds for an industry-led effort to compensate affected users. The frozen ether is simultaneously the subject of a Manhattan federal court fight, as lawyers for families holding $877 million in terrorism judgments against North Korea seek to seize the assets as North Korean property. Because the measure is a Constitutional AIP, the transfer cannot occur for at least eight days, during which the court may intervene, and Arbitrum’s proposal includes indemnification protections that highlight the unusual legal risks surrounding the vote.