Arbitrum’s KelpDAO Freeze Backfires as US Court Blocks $71 Million Recovery
BeInCrypto
A US court has blocked Arbitrum from using seized KelpDAO funds, favoring victims of North Korean state actions seeking compensation.Summary
Arbitrum’s Security Council seized $71 million in ETH linked to the Lazarus Group following a KelpDAO bridge exploit. However, a US court has frozen these assets, preventing the DAO from using them to compensate affected users. The legal intervention stems from a 2015 judgment against North Korea, with victims now seeking to claim the seized funds. This development highlights the legal risks DAOs face when utilizing centralized mechanisms to manage recovered assets, as they become subject to traditional jurisdictional claims.
(Source：BeInCrypto)