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