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CryptoUpdated×3•Originally published 30 April 2026•Updated 2 May 2026•

1 min read

US Court Order Blocks Arbitrum DAO From Releasing 30,766 Frozen ETH

Key Facts

1The Arbitrum Security Council initiated a vote to release 30,766 ETH previously frozen after being moved by the Kelp DAO attacker.

A US court order has officially blocked the Arbitrum DAO from accessing or releasing 30,766 ETH, valued at approximately $71 million, which was previously frozen following the Kelp DAO exploit. This legal intervention halts the Security Council's governance process intended to redistribute the funds to support the network's DeFi ecosystem. The block stems from legal claims filed by victims of North Korean kidnappings, who are seeking to seize the assets under a court judgment dating back to 2015. This development shifts the situation from a decentralized governance matter to a complex international legal battle. Market participants are closely monitoring the impact of this judicial freeze on the ARB token's stability and the broader perception of Layer 2 security. The case highlights the growing tension between decentralized autonomous organizations and traditional legal jurisdictions.

about 1 month ago

Version History

2 additional sources confirmed this story

Version 3about 1 month ago

What changed: The recovery process shifted from a governance vote to a legal battle following a US court order blocking the funds due to claims by North Korean kidnapping victims.

Version 2about 1 month ago

What changed: Added market context regarding ARB price stabilization and the strategic intent to support the DeFi ecosystem.

Version 1about 1 month ago

What changed: Added the market valuation of the frozen assets ($71 million) and reported the unanimous early support in the governance vote.