Arbitrum delegates are considering the release of 30,765 ETH frozen after the rsETH exploit, but a lawyer representing victims of North Korean terrorism has filed a restraining notice, claiming the funds as North Korean property. The notice, filed under New York law, is on behalf of three sets of judgment creditors with $877 million in claims against North Korea.
The claims stem from decades-old incidents, including the 1972 Lod Airport massacre and the abduction and killing of Reverend Kim Dong Shik in 2000. The plaintiffs won their cases, but North Korea has never paid, and the families have been searching for assets to seize.
The lawyer argues that the frozen ETH, linked to the Lazarus Group hacking unit, qualifies as North Korean property under U.S. law, giving the families a senior claim on the funds. The filing has drawn pushback, with some arguing that the ETH belongs to the original depositors and that blocking its release would shift the cost of North Korea's debt to a different set of victims.