Arbitrum delegates are deliberating on the release of 30,765 ETH frozen after the rsETH exploit, but a lawyer for victims of North Korean terrorism has intervened, claiming the funds should go towards satisfying decades-old judgments against the Democratic People's Republic of Korea. The lawyer, Charles Gerstein, has filed a restraining notice under New York law on behalf of three sets of judgment creditors, who have won cases related to the 1972 Lod Airport massacre, the abduction and killing of Reverend Kim Dong Shik, and the 2006 Israel-Hezbollah war. The plaintiffs argue that the frozen ETH, linked to the Lazarus Group hacking unit, qualifies as North Korean property under U.S. enforcement law, giving them a senior claim on the funds.
The case has sparked debate among Arbitrum delegates, with some arguing that the ETH belongs to the original rsETH depositors and that blocking its release would unfairly shift the cost of North Korea's debt onto a different set of victims.