Arbitrum DAO Court Updates: ETH Freeze Lifted for Transfer to Aave LLC

KuCoinFlash

Release Time: 05/12/2026 00:55:40

Summary

ETH update: The Arbitrum DAO’s court filing reveals that a May 1 restraining order on the frozen ETH has been modified. On May 8, the court permitted the ETH to be transferred to Aave LLC through Arbitrum chain voting. The revised AIP retains the ETH designated for rsETH recovery. Aave LLC will fulfill all court obligations during the ongoing legal proceedings. This ETH update underscores key legal progress in the asset recovery process.

Odaily Planet Daily report: An update to the Arbitrum DAO proposal shows that on May 1, a plaintiff creditor in an unrelated case served a restraining order on Arbitrum DAO targeting ETH frozen following the rsETH incident. Several days later, Aave LLC filed an emergency motion to vacate it.

On May 8, the court modified the restraining order to permit on-chain Arbitrum voting and the transfer of frozen ETH to Aave LLC. Following the transfer, the restraining order will apply to Aave LLC. The revised constitutional AIP preserves the asset recovery intent approved by the Arbitrum DAO, and the ETH will still be used for rsETH event recovery. Aave LLC will comply with all court obligations during the litigation.

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