A U.S. federal judge has cleared the way for the transfer of roughly 30,765 Ether — worth about $71 million at current prices — to a wallet controlled by the decentralized finance platform Aave. The order, signed by Judge Margaret Garnett on May 9, modifies an earlier asset freeze and removes what recovery teams describe as the final legal hurdle in one of the most complex DeFi rescue efforts to date.
Why the freeze was modified
Judge Garnett’s ruling lifts a hold on the Ether that had been frozen as part of a broader legal action. The funds are tied to rsETH, a liquid staking token at the center of a recovery operation that has involved multiple parties and jurisdictions. Court documents didn't name the individuals or entities behind the recovery, but the order specifically allows the transfer to an Aave-controlled wallet, signaling that the platform will play a key role in unwinding the stranded positions.
The mechanics of a complex recovery
Liquid staking tokens like rsETH let users stake their crypto while still having a tradeable asset. But when a protocol runs into trouble, those tokens can become locked or inaccessible. In this case, the recovery has required coordinating with multiple smart contracts, custodians, and now a federal judge. Investigators working on the case have described it as the most intricate recovery they've handled to date, though no specific details about the original incident or the amount of rsETH involved were disclosed in the order.
What happens next
With the legal block removed, the next step is the actual transfer of the 30,765 ETH to Aave’s wallet. From there, the recovery team will likely begin the process of converting or rebalancing assets to return value to affected users. No timeline for that process has been announced, and it’s unclear whether additional court approvals will be needed as the operation unfolds.
