#Gate广场五月交易分享

New York Court Suspends Ruling on $71 Million Ethereum Recovery Request for AAVE

The Klep DAO attack incident is not over yet! It was thought that Arbitrum sacrificing community consensus to freeze $70 million in ETH could give AAVE "a chance to recover," but it turned out to be full of twists and turns.
A federal judge in New York has paused the ruling on AAVE's request to release the $71 million frozen Ethereum related to Kelp DAO, requiring both parties to submit additional legal arguments before the June hearing. Judge Margaret M. Gannett stated that AAVE LLC failed to adequately explain how users would suffer "compound losses" if the restrictions on the funds remain in effect. The core of the dispute is 30,765 ETH, which was frozen by Arbitrum's Security Council on April 21 due to its connection to the Kelp DAO attack on April 18. The attack targeted Kelp's LayerZero-powered bridge, allowing hackers to mint uncollateralized RETH, which was then used as collateral to borrow about $230 million in Wrapped ETH on AAVE V3. Early reports linked this attack to approximately $190 million in bad debt in the DeFi lending market. The blame for the incident has been passed around, and AAVE, which was inexplicably caught in the crossfire, has become the most severely hurt and most helpless party. 😂