BlockBeats News, May 9th, United States District Judge Margaret Garnett approved Aave's asset recovery plan after the rsETH exploit, allowing around $71 million ETH previously frozen on Arbitrum to be transferred to a wallet controlled by Aave.

Court documents show that the decision modified the previous restraining order against Arbitrum DAO, allowing the community to complete the ETH transfer through on-chain governance vote, while waiving legal liability for those voting and executing the transfer. The incident stemmed from the rsETH exploit in April, widely attributed to the Lazarus Group associated with North Korea.

Previously, lawyers representing victims of North Korean terrorism had advocated for the freeze of the assets and attempted to include them in the scope of an approximately $877 million outstanding judgment. The Arbitrum community had previously shown strong support in a Snapshot temperature check vote to return the frozen ETH to the Aave recovery plan, but the actual transfer still requires formal on-chain governance approval. The report noted that this case is also part of U.S. plaintiffs' efforts to recover North Korea-related crypto assets.

In addition to Arbitrum, the plaintiffs had previously sued the privacy protocol Railgun DAO, with Digital Currency Group (DCG) being named as one of the defendants, alleging its involvement in related governance and economic activities.