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U.S. judge postpones hearing on Aave's application to unfreeze $71 million in stolen ETH

U.S. Judge Margaret M. Garnett in New York postponed the ruling on Aave's emergency application on Wednesday, which aims to unfreeze $71 million in ETH related to the Kelp DAO hacking incident, and requested both parties to submit supplemental briefs before the hearing on June 5. Aave is attempting to reclaim the $71 million in ETH frozen on Arbitrum to assist in the asset recovery efforts from this hacking incident—Kelp DAO suffered losses of up to $293 million from the hack, making it one of the most severe security incidents in the DeFi space this year.However, the U.S. law firm Gerstein Harrow LLP submitted a restraining order to the court in early May, claiming that its client has rights to the aforementioned funds. Aave then filed an emergency motion to lift the freeze, warning that if the funds are not released in a timely manner, it could lead to user liquidations and potentially impact the entire DeFi market. Judge Garnett noted in her ruling that Aave failed to adequately explain how user funds would incur "compound losses" if the restraining order remained in place. She also acknowledged the complexity of the case, the risks faced by the victims, and requested both parties to provide supplemental statements on six key issues, including: whether the hacking transaction is subject to New York state sanctuary principles, the legal distinctions between fraud and theft and what rights the hacker has over the stolen assets, which laws apply to determine the priority of claims for frozen assets, whether constructive trusts are an appropriate remedy, and whether Aave or Arbitrum can identify individual victims and proportionally return assets. Both parties must submit supplemental briefs by May 22.Meanwhile, the overall compensation work for Kelp DAO is progressing. Kelp and Aave announced on Tuesday that the rsETH held by the hacker has been destroyed on Arbitrum, and approximately $278 million in loss tokens will be restored within the next two weeks through the funds of the Aave Recovery Guardian multi-signature wallet. Once the relevant smart contracts are reactivated, all functions of rsETH will return to normal.

The U.S. SEC has postponed the review of the first batch of prediction market ETFs, which are linked to real events such as election outcomes and economic recessions

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has delayed the review of the first batch of predictive market ETFs, resulting in the postponement of more than 24 products originally scheduled for launch. Insiders revealed that the SEC is requesting issuers to provide further clarification on product mechanisms and information disclosure details, and this delay is expected to be temporary.Issuers such as Roundhill Investments, Bitwise Asset Management, and GraniteShares submitted applications in February this year to launch ETF products linked to real-world events such as election results, economic recessions, tech layoffs, and oil prices.According to SEC rules, ETF applications typically become effective automatically 75 days after submission unless the regulatory agency intervenes. Currently, Roundhill has set May 5 as the effective date, and Bitwise and GraniteShares' products are also expected to launch around the same time. The market is closely watching whether the SEC will ultimately approve these products that open up the "event contract" asset class.Bitwise Chief Investment Officer Matt Hougan stated, "This is a rapidly maturing field, and regulation is maturing in parallel," noting that innovative products like Bitcoin ETFs have also gone through a lengthy review process but ultimately launched successfully.

first_img KelpDAO: Actively advancing post-incident solutions and prioritizing the protection of user interests

According to official news, KelpDAO stated that over the past few days, the team has been continuously advancing the handling of related events with the support of partners, allies, and the community. Discussions are progressing in a positive direction, and efforts are being accelerated to reach a suitable solution. The project party emphasized that it always adheres to the core principle of "user first," and subsequent measures will be gradually implemented with the aim of safeguarding the overall interests of users.In the past four days, the Kelp team has been working around the clock in collaboration with multiple parties, maintaining close communication with all relevant parties, and making substantial progress on several potential solutions. This includes measures taken by the Arbitrum Security Council to freeze the stolen funds, as well as SEAL 911 participating in the preliminary investigation to provide objective and clear analytical support for the incident.Kelp stated that the current focus of work remains on protecting user asset security and strengthening the protocol itself. This incident is not only of critical significance to the project but also has enlightening value for the entire industry. The team will continue to disclose subsequent progress through official channels and thanks the ecological partners and community for their ongoing support.Previous reports indicated that the KelpDAO hacker has essentially laundered $175 million in ETH into BTC.

The U.S. cryptocurrency market structure bill may be postponed for review until May, with increasing lobbying from the banking industry intensifying the divisions

According to Crypto In America, the U.S. CLARITY Act has entered a critical negotiation period this week, and whether it will receive the long-awaited committee review in April or be postponed until May will depend on recent progress. The Senate Banking Committee will focus on the confirmation hearing of Federal Reserve Chair nominee Kevin Walsh at the beginning of the week. After that, the committee must decide by Friday whether to notify the review of the bill in order to hold a vote in the week of April 27.The banking group represented by the North Carolina Bankers Association is lobbying against the stablecoin yield restriction provisions in the bill, urging members to call Senator Thom Tillis's office to request amendments. It is reported that industry groups are also reaching out to other committee members.After more than two months of negotiations, crypto companies and banks reached a compromise at the end of last month, which the crypto industry is generally satisfied with. However, after the White House Council of Economic Advisers report downplayed the risks of stablecoin yields to the banking system, calls for amendments from the banking side have intensified.Patrick Witt, Executive Director of the White House Crypto Council, criticized banks on the X platform for "further lobbying out of greed or ignorance." Senator Tillis proposed holding an in-person "crypto carnival" meeting, but this may extend the timeline. He emphasized that there are still issues to negotiate but expressed optimism about scheduling the review in the coming weeks.In addition to yield issues, the bill also needs to address ethical and DeFi-related provisions. This week's progress will determine the fate of the bill, and the market is highly attentive.

Zcash core development team ZODL releases strategic roadmap: focusing on post-quantum, security scalability, and user experience

The Zcash core development team Zcash Open Development Lab (ZODL) founder Josh Swihart released the latest progress on Zcash, proposing a strategic direction centered on "post-quantum security, scalability, and user experience," and using the Artemis II lunar mission as a metaphor to emphasize achieving seemingly impossible goals through technological breakthroughs. The ZODL team stated that Zcash is entering the "Zcash IV" phase, which will build infrastructure similar to a "lunar base" to support the protocol and application security scaling to billions of users, while promoting the vision of privacy transactions without large-scale financial surveillance.On the product and technology front, ZODL continues to iterate, with its 3.3.x version now launched on iOS and Android, adding hardware wallet connection management, SDK upgrades, and multiple experience optimizations, while advancing key developments such as Keystone wallet functionality and address system upgrades (ZIP 316, UIVK/UFVK). Meanwhile, the Zcash core team has fixed multiple system issues and is advancing the development of the Zallet alpha version, while strengthening unified address standards and wallet interaction experiences, laying the groundwork for future scalability and performance improvements.In addition, ZODL disclosed that its application data continues to grow and participated in a stablecoin privacy summit to strengthen industry collaboration. However, due to upgrades in regulation and network restrictions, ZODL has temporarily removed its app from the Russian app store. The team emphasized that privacy is not an option but a fundamental need in the digital age, and will continue to accelerate delivery pace to promote the popularization of ZEC and ecological development in the future.
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