New York court orders Arbitrum DAO to freeze $71 million in ETH, potentially to compensate victims of North Korea-related cases

Odaily Planet Daily News MegaETH director PaperImperium disclosed on the X platform that documents from the U.S. District Court for the Southern District of New York show that a U.S. court has issued an injunction to Arbitrum DAO, prohibiting it from transferring approximately $71 million in ETH assets that were previously frozen in the KelpDAO hacking incident. The plaintiffs are attempting to use these funds to enforce outstanding judgments for compensation related to North Korea's involvement in terrorism, kidnapping, and other cases over the years. They have also applied to serve legal notice to Arbitrum DAO through alternative means, treating it as a liable "partnership."

The court documents also note that Arbitrum DAO has a Security Council governed by ARB holders, which has the ability to take action in emergencies. Therefore, relevant members may face legal consequences such as contempt of court if they refuse to cooperate. The market believes that this case could become a significant precedent for the U.S. judicial system to directly constrain DAO governance structures, further highlighting the compliance pressures faced by DeFi protocols under real-world legal frameworks.