US law firm attempts to block transfer of frozen ETH from Kelp exploit

Gerstein Harrow has filed similar cases in the past, arguing its clients have a claim to funds stolen by the DPRK and frozen by crypto firms.

A US law firm has filed a restraining notice to block the transfer of frozen Ether from the Kelp exploit, arguing that its clients are owed over $877 million in compensation and damages by North Korea. 

Charlie Gerstein, a lawyer for US law firm Gerstein Harrow LLP, said in a post on the Arbitrum DAO forum on Friday that a New York district court signed off on a restraining notice and three writs of execution preventing the DAO from moving the Ether under threat of contempt of court.

The law firm argued that its clients, who were not affected by the Kelp exploit, won default judgments against North Korea in three separate US court cases in 2010, 2015 and 2016 and are owed a collective $877 million in compensatory and punitive damages, plus interest. It also argued that its clients have a claim to DPRK property. Gerstein said in the restraining notice that the stolen Ether is “property” in which the DPRK has a stake because the hacker group is affiliated with the country.

Read more