Aave launches binding Arbitrum vote to move $71M in disputed ETH — with North Korean terrorism creditors fighting for the same funds!

Aave and other stakeholders affected by last month's Kelp DAO hack have initiated a Constitutional Arbitrum Improvement Proposal to transfer 30,765 ETH — roughly $71 million — from an Arbitrum Security Council wallet to an Aave LLC-controlled address. The move implements Judge Margaret Garnett's court order, which authorizes the on-chain governance vote while requiring that a restraining notice from North Korean terrorism judgment creditors be respected. If passed, Aave LLC would hold the funds but cannot freely use, transfer, or deploy them without further court approval.

The case has become a landmark collision between DeFi recovery mechanics and U.S. terrorism enforcement law. Lawyers representing families holding approximately $877 million in unpaid terrorism judgments against North Korea argue the exploit — widely attributed to Lazarus Group by blockchain forensics firms — means…