Lawyer blocks release of 30,765 ETH linked to North Korea after rsETH hack on Arbitrum DAO.

A lawyer representing victims of North Korean terrorism has served Arbitrum DAO with a restraining notice to block the release of 30,765 ETH frozen after the rsETH exploit, claiming the funds are linked to North Korea through the Lazarus hacking group. The notice cites decades-old U.S. judgments totaling $877 million against North Korea for terrorist acts, arguing the frozen ETH qualifies as DPRK property under U.S. law. Arbitrum delegates face a legal and ethical dilemma between compensating recent DeFi victims and honoring long-standing terrorism-related claims. The case highlights complex issues around stolen crypto assets, sovereign claims, and decentralized governance liability.