The U.S. District Court for the Southern District of New York has requested supplementary briefs from Aave (AAVE) and Gerstein Harrow, a U.S. law firm representing victims of North Korean terrorism, regarding the final ownership of $71 million worth of Ethereum (ETH) frozen due to the Kelp DAO hacking incident, CoinTelegraph reported. Judge Margaret Garnett pointed out that Aave had not sufficiently explained the potential for increased losses if the freeze were maintained, demanding additional materials on six issues, including the legal nature of the stolen assets and creditor priorities. The deadline for both parties' briefs is May 22, and the rehearing is scheduled for June 5. Although Judge Garnett permitted the transfer of these funds from Arbitrum to an Aave wallet on May 9, Aave cannot freely use or distribute them until the court makes a final decision. Gerstein Harrow represents creditors who received a total of $877 million in damages in a North Korean terror lawsuit but have been unable to enforce the judgment, claiming the funds are linked to North Korea's Lazarus Group.
