NY judge delays Aave’s $71M ETH unfreeze in Kelp DAO case

A New York judge postponed a decision on Aave’s request to unfreeze $71M in ETH from the Kelp DAO hack, seeking more evidence. Supplemental briefs are due by May 22, with a hearing set for June 5.

A New York federal judge has delayed ruling on Aave’s emergency request to unfreeze $71 million in Ethereum linked to the Kelp DAO hack. The judge cited insufficient evidence and requested more comprehensive legal arguments from both Aave and Gerstein Harrow LLP, who represents claimants to the funds and opposes their release. The assets, totaling 30,765 ETH, remain frozen on Arbitrum following the April 2026 exploit, which caused approximately $293 million in losses. Aave contends that ongoing restrictions could destabilize user balances and negatively impact the broader decentralized finance sector. Judge Margaret M. Garnett has given both parties until May 22 to submit supplemental briefs, with the next hearing scheduled for June 5. The case underscores the complex intersection of DeFi recovery efforts and traditional legal processes, highlighting potential consequences for users and the wider financial ecosystem.