US judge postpones hearing on Aave's application to unfreeze $71 million in stolen ETH

Odaily Planet Daily News US Judge Margaret M. Garnett of New York on Wednesday postponed a ruling on Aave's emergency application to unfreeze $71 million in ETH linked to the Kelp DAO hacker incident, and ordered both parties to submit supplemental briefs before the June 5 hearing. Aave is seeking to recover the $71 million in ETH frozen on Arbitrum to assist in asset recovery from the hacking incident. The Kelp DAO hack resulted in losses of $293 million. US law firm Gerstein Harrow LLP filed a restraining order with the court in early May, asserting that its clients have rights to the aforementioned funds. Aave subsequently filed an emergency motion to lift the freeze, warning that failure to release the funds in a timely manner could trigger user liquidations and potentially impact the DeFi market. Judge Garnett noted in her ruling that Aave had failed to adequately explain how user funds would incur "compound interest losses" if the restraining order remains in place. She acknowledged the complexity of the case and the risks faced by the victims, and ordered both parties to submit supplemental statements on six key issues. The parties must file their supplemental briefs by May 22. Meanwhile, Kelp DAO's overall compensation process is moving forward. Kelp and Aave announced on Tuesday that the rsETH held by the hacker had been burned on Arbitrum, and approximately $278 million worth of lost tokens will be recovered over the next two weeks through the Aave Recovery Guardian multi-signature wallet. Once the relevant smart contracts are reactivated, all functionalities of rsETH will be restored to normal.