A US court has frozen approximately $71 million in ETH from Arbitrum DAO, potentially for use in compensation claims against victims of terrorist attacks.

CoinFeed reported on May 3 that, according to documents from the U.S. District Court for the Southern District of New York, a U.S. court has issued an injunction against Arbitrum DAO, prohibiting it from transferring approximately $71 million worth of ETH assets previously frozen in the KelpDAO hack. The plaintiffs plan to use these assets to enforce outstanding judgments against North Korea for terrorism, abduction, and other crimes committed over the years. The court considers Arbitrum DAO an accountable "partnership" and noted that its Security Council has emergency action capabilities; members who refuse to cooperate may face contempt of court and other legal liabilities. Market analysts suggest this case could become a significant example of the U.S. judicial system directly constraining DAO governance, highlighting the compliance pressures on DeFi protocols.