Aave proposes moving $71 million in frozen ether to its custody amid legal disputes with North Korean terrorism creditors.
Aave has launched a binding Arbitrum governance vote to transfer $71 million in disputed ether to its custody. The proposal follows a court order authorizing the move of 30,765 ETH from an Arbitrum Security Council wallet to an Aave-controlled address.
The funds are tied to last month’s Kelp DAO hack and are contested by U.S. terrorism judgment creditors, who claim the assets as North Korean property to satisfy $877 million in unpaid awards. Voting on the proposal is scheduled to begin May 15.
The case highlights tensions between decentralized finance protocols and legal claims over exploited assets, with implications for DeFi governance and asset recovery.