Aave rsETH Recovery Moves Forward After Approval to Transfer $71M in ETH

Huo Xing Finance reports that Aave said on X that phase two of its technical recovery plan tied to the rsETH incident has made progress. Eight Aave V3 positions controlled by the hacker have been liquidated, with the recovered rsETH collateral transferred to the recovery custodian. The Arbitrum DAO has approved a proposal to return the previously recovered $71 million in ETH. In the related asset-freeze proceedings, a judge accepted Aave LLC's proposal to move the $71 million in ETH to Aave LLC via an onchain vote conducted through the Arbitrum DAO. Aave's next steps include burning rsETH on Arbitrum and replenishing the rsETH reserve. After the reserve is restored, withdrawals will reopen and the WETH LTV on Aave V3's Ethereum mainnet will be reinstated.