Gerstein Harrow LLP, a U.S.-based law firm, filed a restraining notice against Arbitrum DAO in the U.S. District Court for the Southern District of New York, aiming to claim the funds from victims of the KelpDAO exploit. The order blocks the transfer of the 30,766 ETH frozen in Arbitrum's governance wallet.

The firm argues that because the Kelp exploit has been attributed to North Korea's Lazarus Group, the recovered funds constitute DPRK-linked property and therefore can be seized to satisfy a decade-old default judgment for its clients.

Crypto crime investigator ZachXBT called the move "pure evil," describing the firm as predatory. Gerstein Harrow is the same firm behind the notorious PoolTogether lawsuit, in which an Elizabeth Warren staffer sued the savings protocol after depositing just $10. PoolTogether ultimately won the lawsuit in 2023.

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