On May 4, Aave filed an emergency motion in federal court to lift the freeze on approximately $73 million in ETH. These funds were recovered after the April 18 Kelp DAO exploit, but a May 1 court order approved their seizure to satisfy decades-old terrorism judgments against North Korea. Aave’s founder stated: “A thief does not own what he steals.” At the heart of the dispute is whether recovered stolen assets belong to the original users or can be claimed by outside creditors based on an alleged national link to the hacker. The DeFi community’s recovery efforts are now clashing with the U.S. judicial process, and the final ruling could reshape asset ownership rules in crypto.
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