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Arbitrum approves $71 Million ETH release despite U.S. seizure fight
Key takeaways
- The funds are earmarked for a coordinated industry recovery effort led by Aave, KelpDAO, LayerZero, EtherFi and Compound, aimed at making affected users whole.
- But the frozen ether is also at the center of an escalating legal dispute in Manhattan federal court.
- That triggered an emergency legal fight.
The on-chain vote, which closed Friday afternoon Hong Kong time with more than 90% support, authorizes the release of 30,765 ETH frozen by Arbitrum’s Security Council after the April 18 exploit, when attackers used unbacked rsETH tokens as collateral on Aave to borrow roughly $230 million in ETH from the protocol.
The funds are earmarked for a coordinated industry recovery effort led by Aave, KelpDAO, LayerZero, EtherFi and Compound, aimed at making affected users whole.
But the frozen ether is also at the center of an escalating legal dispute in Manhattan federal court.
Article preview — originally published by CoinDesk. Full story at the source.
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