Federal Judge Clears $71M in ETH for Arbitrum-to-Aave Transfer, Retains North Korea Creditors' Claim

According to a federal judge ruling on Friday, 30,766 ETH (approximately $71 million) frozen in Arbitrum DAO since May 1 has been partially cleared for transfer to Aave. Judge Margaret Garnett of the U.S. District Court for the Southern District of New York modified a restraining notice that had locked the funds, allowing an onchain governance vote to proceed without violating the freeze order.

Arbitrum delegates voted to approve the release on Thursday, with 182.2 million ARB tokens supporting the measure and roughly 91% of voting power in favor. However, the funds remain subject to the restraining notice once transferred to Aave's wallet, meaning they could be seized if the court ultimately sides with North Korea-linked terrorism judgment creditors pursuing the assets.