This is another step toward restoring the ecosystem after the April Kelp DAO hack. The community voted 90.96% in favor of the proposal.
The Arbitrum Layer-2 network community has voted to transfer 30,765 ETH▲$1,728.27, approximately $70 million, to the DeFi United fund. These funds were frozen after the April Kelp DAO hack.
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The proposal received 90.96% of votes in favor, with about 9% abstaining. Following approval, Arbitrum will become the largest donor to the DeFi United initiative, which aims to compensate affected users.
Legal Hurdles
However, the final fate of the frozen assets will be decided by the court. On May 1, the US law firm Gerstein Harrow LLP obtained a court order freezing disposal of these ETH. The plaintiffs claim the funds as restitution in older cases related to North Korean terrorist activities.
Aave’s team has filed an emergency motion in New York federal court demanding the freeze be lifted. The protocol argues that even if the attack was linked to the Lazarus Group, temporary possession of stolen assets does not make them the attacker’s property.
Read more: Aave Liquidates Kelp DAO Hacker’s Positions — When Can Users Expect Compensation?
The Arbitrum DAO vote concluded with high support, but due to governance procedures, the transfer cannot occur for at least eight days.
Ecosystem Recovery
The DeFi United initiative has already raised more than $320M from industry participants. Following the hack, Aave’s TVL fell by nearly $13B but has since begun to recover, surpassing $15B.
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