Arbitrum DAO Approves $70 Million Transfer to DeFi United Fund

The Arbitrum community has approved the transfer of 30,765 ETH, equivalent to $70 million, to the DeFi United fund. This decision comes after the funds were previously frozen at the address of a hacker linked to the Kelp protocol breach.

In early May, the Arbitrum DAO held a vote to enable the transfer to assist in compensating for the damages caused by the attack, with approximately 90.96% of participants voting in favor and around 9% abstaining. If enacted, this would position Arbitrum as the largest contributor to the DeFi United initiative. However, the ultimate decision regarding the funds will hinge on a court ruling.

Ongoing Legal Complications

A U.S. court issued a ruling on May 1 that prevents Arbitrum from unfreezing the stolen assets, as they are claimed by victims of North Korean terrorist acts dating back to 2015. Attorney Gabriel Shapiro has indicated that the DAO lacks the authority to manage the ETH without further court proceedings.

"If you want some more info on the Arbitrum legal action, here's the actual court order... the plaintiffs' lawyers did indeed effectuate a facially *legally binding* freeze on the assets,"

— _gabrielShapir0 (@lex_node) May 2, 2026

Additionally, the Aave team has filed an emergency motion seeking to lift the freeze, arguing that the court's rationale is flawed. Representatives from Aave assert that even if a link to the Lazarus Group is established, mere possession of the stolen assets does not confer ownership to the hacker. Notably, the legal team for the North Korean victims has reclassified the Kelp hack as credit fraud.