A New York federal court has ordered Arbitrum DAO to freeze approximately $71 million in ETH assets linked to North Korean hackers following the KelpDAO hack. The injunction, issued by the U.S. District Court for the Southern District of New York, aims to enforce unpaid judgments related to North Korea's acts of terrorism and other offenses.
The court documents reveal that the plaintiffs have requested substituted service to notify Arbitrum DAO, treating it as a liable partnership. The court highlighted that Arbitrum DAO's Security Council, governed by ARB holders, is authorized to act in emergencies, warning that non-cooperative members could face legal consequences. This case may set a precedent for U.S. courts regulating DAO governance, underscoring the compliance challenges DeFi protocols face under legal scrutiny.
NY Court Orders Arbitrum DAO to Freeze $71M in ETH Tied to North Korean Hackers
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