Aave has announced progress in the second phase of its rsETH recovery plan, following the liquidation of an attacker's position on Aave V3 on May 6. Despite Arbitrum DAO's vote to return $71 million in recovered ETH to Aave users, a court injunction related to a North Korean judgment has frozen these funds. Aave disclosed that the court has permitted the transfer of the restricted assets to Aave LLC. Meanwhile, Aave will borrow additional funds to cover the shortfall until the assets are legally returned. In response to the attack, Aave plans to burn the liquidated rsETH on-chain to counteract the malicious over-minting by the hacker. The platform is also working towards gradually restoring cross-chain bridge withdrawals and normal market operations.