A lawyer representing victims of North Korean terrorism has intervened in the Arbitrum DAO forum, asserting that frozen ETH cannot be released due to a New York restraining notice. The notice, filed on behalf of three sets of judgment creditors, claims roughly $877 million in damages against the Democratic People's Republic of Korea. The claims stem from decades-old incidents, including the 1972 Lod Airport massacre and the 2006 Israel-Hezbollah war.
The lawyer argues that the frozen ETH, linked to the Lazarus Group hacking unit, constitutes North Korean property under U.S. enforcement law, giving the families a senior legal claim to the funds. The move has sparked debate among Arbitrum delegates, with some arguing that the ETH belongs to the original depositors and that blocking its release would unfairly shift the cost of North Korea's debt to a different set of victims.