Where Aave’s Exploit Recovery Effort Stands

The post Court Lets Arbitrum DAO Transfer $71M in ETH Tied to North Korea Hack to Aave appeared on BitcoinEthereumNews.com. A Manhattan federal judge has allowed Arbitrum DAO to move $71 million in frozen Ether to Aave, clearing the path for the DeFi protocol’s recovery effort following a North Korea-linked exploit. Judge Margaret Garnett of the Southern District of New York issued the order on Friday, modifying a restraining notice that had locked the assets inside Arbitrum DAO. The modification permits an onchain governance vote to send the funds to a wallet controlled by Aave LLC, and explicitly protects anyone who participates in the transfer from being held in violation of the freeze. The order still keeps the terrorism victims’ legal claim on the funds, meaning Aave can’t use the funds freely and could be forced to hand them over if the court ultimately rules in the terrorism victims’ favor. Judge allows Arbitrum to move funds to Aave. Source: Courtlistener The decision came afte

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Early reports framed the incident as a 1inch exploit, but the protocol clarified that it was not compromised and no user funds were affected.

A Manhattan judge modified a restraining notice to let Arbitrum DAO move $71 million in frozen Ether to Aave, while preserving terrorism victims’ legal claim on the funds.

As agents move past demos and into enterprise workflows, organizations are confronting the governance, infrastructure and operational problems posed by more autonomous AI systems.

Chainlink CCIP just secured another major DeFi migration.

Aave Labs's Chief Legal and Policy Officer committed to reform earlier today at the Consensus Miami 2026 conference.

Blockchain security firm Blockaid linked the exploit to the same operator behind the March 2025 1inch Fusion V1 incident, though it stems from a different vulnerability.