Aave outlines post-rsETH exploit recovery as legal holds shadow $71M ETH release

Aave moved from crisis containment to coordinated stabilization after the rsETH exploit, including liquidating eight attacker-linked positions on 6 May across Ethereum and Arbitrum. The protocol said recovered rsETH collateral was routed to the Recovery Guardian, while broader DAO actions targeted the release of about 30,766 ETH (nearly $71 million) for affected users. Even with liquidity stabilizing above $15 billion after TVL fell from nearly $26 billion to $14.2 billion, U.S. court restraints and governance steps could continue to weigh on confidence.