NY Judge Pauses Aave $71M ETH Unfreeze Ruling, Orders Briefs by May 22 for June 5 Hearing

A New York federal judge paused ruling on Aave’s emergency motion to unfreeze 30,765 ETH (~$71M) recovered from the Kelp DAO exploit, ordering supplemental briefs by May 22 ahead of a June 5 hearing to evaluate compounding losses and creditor claims. The assets, frozen May 1 by a restraining notice linked to $877M North Korea terrorism judgments, were approved for transfer to Aave custody on May 9—preserving claims—after Arbitrum DAO support and Aave’s May 7 liquidations recovered ~$30M. DeFi United pledges exceed $320M for rsETH backing, but the delay increases legal uncertainty for Aave’s $15B+ TVL and DeFi stability.