US court demands more info from Aave on $71M ETH, sets June rehearing

A U.S. court has requested supplemental briefs from Aave (AAVE) and the law firm Gerstein Harrow regarding the final ownership of $71 million in Ethereum (ETH) frozen after a Kelp DAO hack, Cointelegraph reported. Judge Margaret Garnett of the Southern District of New York noted that Aave had not sufficiently explained the potential for increased losses if the freeze is maintained. She requested additional materials on six issues, including the legal nature of the stolen assets and creditor priority. The deadline for both parties to submit their briefs is May 22, with a rehearing scheduled for June 5. On May 9, Judge Garnett had permitted the transfer of the funds from Arbitrum to an Aave wallet, but Aave is barred from using or distributing them until the court makes a final ruling. Gerstein Harrow represents creditors who were awarded an uncollected $877 million judgment in a lawsuit against North Korea for acts of terrorism. The firm is asserting a claim on the funds, alleging they are linked to the North Korean Lazarus Group.