New York Federal Court Orders Arbitrum DAO to Freeze $71 million ETH Linked to North Korean Hackers, Potentially for Compensation to Terror Attack Victims

BlockBeats News, May 3rd, according to documents filed in the Southern District of New York federal court, the U.S. court has issued a restraining order against the Arbitrum DAO, requiring it not to transfer approximately $71 million worth of ETH assets previously frozen in the KelpDAO hack.

The plaintiff is attempting to use these assets to enforce an unpaid judgment related to North Korea's long history of terrorism, kidnappings, and other cases. The court documents indicate that the plaintiff has applied to serve legal notice on the Arbitrum DAO through alternative means and considers it a liable "partnership organization."

The court also emphasizes that the Arbitrum DAO has a Security Council governed by ARB holders, with the ability to take action in emergency situations. Therefore, if members refuse to cooperate, they may face legal consequences such as contempt of court.

Market participants believe that this case may become a landmark example of the U.S. judicial system directly constraining a DAO governance structure, once again highlighting the compliance pressure of DeFi protocols within real-world legal frameworks.