# [Constitutional\] AIP: Amended Release of Frozen ETH Pursuant to Court Order
AI summary
This proposal, an amendment to a previous one, seeks to transfer approximately 30,765.67 ETH (worth about $100 million at current prices) that was frozen by the Arbitrum Security Council following an incident involving rsETH. The original plan was to release this ETH for a recovery effort. However, a court order has now directed that the ETH be transferred to a wallet controlled by Aave LLC, where it will be held while the court continues its deliberations. This proposal updates the recipient and custody mechanics to comply with that court order.
If passed, the Arbitrum DAO will transfer the specified ETH to Aave LLC, adhering to a court order. This means the funds will be held by Aave LLC under court supervision, rather than being immediately used for the rsETH recovery effort as initially planned. The direct impact on Arbitrum DAO's treasury is a transfer of assets, not a loss, but the ultimate fate of the ETH remains subject to court proceedings. The rsETH recovery effort will not immediately receive these funds.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
[Constitutional] AIP: Amended Release of Frozen ETH Pursuant to Court Order
Status: Amended following passed Temp Check
Authors: Aave Labs, KelpDAO, LayerZero, EtherFi, Compound
Date: 5/11/26
Summary
This amended Constitutional AIP updates the execution path for the previously posted proposal to release the frozen ETH secured by the Arbitrum Security Council in connection with the rsETH incident. Since then, a Court order was issued authorizing the transfer of the frozen ETH to a wallet controlled by Aave LLC and for Aave LLC to hold this frozen ETH while the court continues to del…