Lawsuit seeks to seize $73M in ETH frozen by Arbitrum after Kelp DAO hack

U.S. law firm Gerstein Harrow LLP has filed a lawsuit to seize 30,766 ETH, worth $73 million, that was frozen by Arbitrum (ARB) following the Kelp DAO hack, Cointelegraph reported. Gerstein Harrow's clients claim they are entitled to over $877 million from three separate, successful lawsuits against North Korea for past hacking incidents. The firm argues that because its clients won these judgments, they have a rightful claim to the frozen funds. A New York court has reportedly approved a restraining and execution order, prohibiting Arbitrum from moving the assets. Kelp DAO suffered a $292 million hack on April 18, after which the Arbitrum Security Council froze the 30,766 ETH in an address linked to the hacker. Arbitrum had planned to transfer the funds to DeFi United, a relief fund for hacking victims, to compensate users. However, the lawsuit is now expected to delay this recovery process. Gerstein Harrow has previously filed similar lawsuits, including in a case involving a Bybit hack. Arbitrum has stated its position that the seizure action is unjust, saying it "delays the return of victims' funds."