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Judge approves $71M ETH transfer to Aave, advancing DeFi recovery after KelpDAO exploit.

Market News
09 May 2026
Bitcoin
Bullish
pluang ai news

A U.S. judge has authorized the transfer of about 30,765 ETH, valued at $71 million, to Aave's wallet, resolving the final legal hurdle in recovering funds after the April 18 KelpDAO exploit. Attackers had borrowed $230 million in ETH using unbacked rsETH as collateral, causing a major DeFi crisis. The ruling also protects governance voters from legal liability, allowing the recovery plan to recapitalize the rsETH bridge and restore normal loan-to-value ratios on Aave. This marks a significant step in one of DeFi's most complex recovery efforts.

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