Arbitrum delegates are considering releasing 30,765 frozen ETH as part of a coordinated recovery effort following the rsETH exploit. However, a lawyer representing victims of North Korean terrorism has intervened, claiming that the funds cannot be released. The lawyer, Charles Gerstein, has filed a restraining notice under New York law on behalf of three sets of judgment creditors with approximately $877 million in claims against North Korea.
The claims date back decades, including the 1972 Lod Airport massacre and the 2000 abduction of Reverend Kim Dong Shik. The plaintiffs have won their cases but North Korea has never paid, and they are now seeking to seize the frozen ETH, arguing that it qualifies as North Korean property under U.S. law. The filing 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.