Arbitrum DAO Clears $71M of Frozen ETH for Aave-Led User Reimbursement Plan

Arbitrum DAO members have approved, with more than 90% support, a measure to unlock roughly $71 million in ETH that was frozen after the Lazarus-linked rsETH vulnerability. The tokens are slated to fund a user compensation program to be administered by Aave. The same pool of ETH is also at the center of a case in federal court in Manhattan. Lawyers for families who won an $877 million judgment against North Korea over terrorism allegations are seeking to seize the assets, arguing they should be treated as North Korean property. Because the proposal is a constitutional-level Arbitrum Improvement Proposal (AIP), the transfer cannot be executed for at least eight days. The waiting period leaves room for potential court action, and the approved text also includes indemnification provisions intended to mitigate legal exposure.