U.S. Judge Puts Off Decision on Aave Bid to Unfreeze $71M in ETH Tied to Kelp DAO Hack

U.S. District Judge Margaret M. Garnett has postponed a decision on Aave's emergency request to unfreeze $71 million in ETH linked to the Kelp DAO hack, directing both sides to file supplemental briefs ahead of a June 5 hearing. The Kelp DAO incident resulted in $293 million in losses. Aave has argued that delaying release of the funds could lead to user liquidations and ripple through the DeFi market. The court asked the parties to address six issues in additional submissions, due by May 22. Separately, Kelp DAO's reimbursement effort is in progress, with about $278 million in lost tokens expected to be restored within two weeks through the Aave Recovery Guardian multisig wallet.