Arbitrum's $71M ETH cleared for Aave transfer — but North Korea terrorism creditors keep their legal claim!

A Manhattan federal judge on Friday modified a restraining notice that had blocked Arbitrum DAO from moving 30,766 ETH (~$71 million) frozen in the wake of the April 18 Kelp DAO exploit. The order clears the path for an onchain governance vote to transfer the funds to a wallet controlled by Aave LLC, and explicitly shields anyone who votes or participates in the transfer from being held in contempt of the freeze.

The catch: Aave agreed to be bound by the restraining notice as though it had been served directly. That means the terrorism creditors — holders of a North Korea-linked judgment — retain their legal claim on the funds even after the transfer. The money moves, but the lien travels with it.

The underlying dispute between Kelp DAO exploit victims and the North Korea terrorism judgment holders remains entirely unresolved, leaving a $71 million pool of ETH at the center of…