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Aave launches binding Arbitrum vote to move $71 million in disputed ETH
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Aave launches binding Arbitrum vote to move $71 million in disputed ETH

CoinDesk · May 12, 2026, 6:35 AM · Also reported by 2 other sources

Key takeaways

  • If approved, the proposal would move 30,765 ETH from the wallet where Arbitrum’s Security Council immobilized the funds to an Aave LLC-controlled address, as required by the court’s order.
  • The legal fight over the frozen assets took an unusual turn after blockchain forensics firms widely attributed the exploit to North Korea’s Lazarus Group.
  • Still, that attribution has been cited alongside broader legal arguments by lawyers representing families holding roughly $877 million in unpaid U.S.

This amended proposal implements Judge Margaret Garnett’s recent court order, which authorizes an on-chain Arbitrum DAO vote to transfer the frozen ETH from its current immobilized address to a wallet controlled by Aave LLC, provided that the restraining notice sought by North Korean terrorism judgment creditors is respected.

If approved, the proposal would move 30,765 ETH from the wallet where Arbitrum’s Security Council immobilized the funds to an Aave LLC-controlled address, as required by the court’s order. However, the assets would remain subject to strict legal restrictions and cannot be freely used, transferred, or deployed by Aave LLC unless permitted by the court.

The legal fight over the frozen assets took an unusual turn after blockchain forensics firms widely attributed the exploit to North Korea’s Lazarus Group. That attribution comes from blockchain analytics firms and external forensic research, and has not been established as a legal finding within either the Arbitrum governance process or the ongoing court proceedings.

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