A New York court has ordered Arbitrum DAO to freeze 71 million USD in ETH, which may be used to compensate victims related to North Korea cases

MegaETH supervisor PaperImperium disclosed on platform X that documents from the U.S. District Court for the Southern District of New York show that the U.S. court has issued a restraining order to Arbitrum DAO, prohibiting it from transferring approximately $71 million in ETH assets that were frozen during the KelpDAO hacking incident.

The plaintiffs are attempting to use these funds to enforce unpaid judgment compensations related to North Korea's involvement in terrorism, kidnapping, and other cases over the years, and have applied to serve legal notice to Arbitrum DAO by alternative means, treating it as a "partnership organization" that can be held accountable. The court documents also indicate that Arbitrum DAO has a Security Council governed by ARB holders, which has the ability to take action in emergencies; therefore, if relevant members refuse to cooperate, they may face legal liabilities such as contempt of court. The market believes that this case may become an important precedent for the U.S. judicial system directly constraining DAO governance structures and further highlight the compliance pressures DeFi protocols face within real legal frameworks.

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