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May 5, 2026

Aave Fights Back For DeFi Users

Aave LLC filed an emergency motion to vacate Gerstein Harrow's restraining notice and is requesting a $300M bond if the notice stands, defending DeFi United's recovery for KelpDAO victims.

On May 4, Aave LLC fired back with an emergency motion to vacate the restraining notice in the SDNY court. Aave argues that a thief does not gain legal title to stolen property simply by taking it. The ETH belongs to Kelp DAO victims and downstream DeFi users, not to North Korea, and therefore not to Gerstein Harrow's clients.

Aave is also requesting that if the restraining notice is not vacated, Gerstein Harrow's clients be required to post a $300M bond to cover damages to the hack victims. The DAO vote to transfer funds to a recovery multisig, which previously had near-unanimous support, could remain legally blocked pending the court's decision.


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