- A US law firm has secured a court order blocking the transfer of $73 million in Ether frozen after the Kelp DAO exploit, arguing its clients hold claims against North Korea.
- The firm, Gerstein Harrow LLP, asserts its clients are owed over $877 million from default judgments against the DPRK and that the stolen Ether is DPRK property.
- This legal action could delay the return of funds to victims of the $292 million Kelp hack, which is attributed to the North Korean-linked Lazarus Group.
- The same law firm has previously filed similar claims against frozen cryptocurrency from other high-profile hacks linked to North Korea.
A US law firm has moved to intercept $73 million in frozen cryptocurrency intended for victims of a major DeFi hack, according to a restraining notice filed on the Arbitrum DAO forum last Friday. Lawyer Charlie Gerstein of Gerstein Harrow LLP said a New York district court approved the notice to prevent the DAO from moving Ether tied to the Kelp exploit. The firm argues its clients have claims against North Korea exceeding $877 million.
Gerstein stated in the restraining notice that the stolen Ether is “property” in which the DPRK has a stake because the Hacker group TraderTraitor is affiliated with the country. Consequently, this legal action could prolong the recovery process for those affected by the $292 million Kelp DAO hack on April 18. Meanwhile, the funds were proposed to be unfrozen and directed to a compensation fund for victims.
An Arbitrum DAO member under the handle Zeptimus said blocking the return shifts costs onto a different set of victims. However, Gerstein Harrow has filed similar claims before, including one against funds frozen by Tether from the 2023 Heco Bridge hack. The firm has also filed class-action suits against multiple DAOs and staked claims on funds from other major exploits.
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