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Arbitrum Faces Restraining Order as North Korea Victims Target Seized KelpDAO Funds
Victims of North Korean terror, awarded hundreds of millions by a U.S. court, are now seeking to recover their damages from Arbitrum.
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The family of a South Korean pastor killed by North Korea is seeking to recover its court-awarded damages via funds seized by Arbitrum from last month's KelpDAO exploit.
What's the Scoop?
- Restraining Order: Lawyers representing the victims of North Korean terror have filed for a restraining against Arbitrum, targeting assets seized from the suspected DPRK hack of KelpDAO, a development that is bound to complicate efforts to return approximately $70M in frozen funds to victims of the exploit.
- Case Background: Han Kim and Yong Seok Kim – U.S. nationals whose family member (a South Korean pastor) was abducted from China and killed by North Korea – were awarded $15M each in compensatory damages and $300M in punitive damages against North Korea by a landmark 2015 ruling handed down by the United States Court of Appeals for the District of Columbia Circuit. Despite the judgment, plaintiffs have struggled to collect compensation from the isolated regime.
This is why the Arbitrum Security Council was not kind to the DAO. Lawyers for DPRK victims have now found a large pile of DPRK assets to seize to make good on a 2015 judgement against DPRK.
— PaperImperium (@ImperiumPaper) May 2, 2026
It appears a restraining order prohibiting the transfer of funds will complicate the… pic.twitter.com/P335TYlF71