News linked to both this project and an event.
According to CoinDesk, Payward—the parent company of Kraken—filed a second amended complaint in the U.S. District Court for the District of Colorado against its former custody partner Etana Custody and its CEO, Dion Brandon Russell, alleging misappropriation of over $25 million in customer funds and operation of a “Ponzi scheme.” Payward claims that Etana commingled custodial assets with its own funds to cover operating expenses and make high-risk investments, while using false account statements to conceal the resulting funding shortfall. In April 2025, when Kraken attempted to withdraw approximately $25 million in reserve funds, Etana delayed the withdrawal, citing fabricated reconciliation issues, and instead relied on new deposits to fill the gap. At least $16 million of the misappropriated funds was invested in promissory notes issued by Seabury Trade Capital, which later defaulted. Subsequently, Colorado state regulators issued a cease-and-desist order against Etana, which entered liquidation proceedings in November 2025 and is now under the management of a court-appointed receiver. Kraken is seeking at least $25 million in damages, plus treble civil theft penalties.
According to Cointelegraph, U.S. law firm Gerstein Harrow LLP has filed an application with the U.S. District Court for the Southern District of New York seeking a temporary restraining order and three writs of execution to prevent the Arbitrum DAO from transferring 30,766 ETH (valued at approximately $73 million) frozen following the Kelp vulnerability. The firm argues that its clients obtained default judgments against North Korea in U.S. courts in 2010, 2015, and 2016, entitling them to roughly $877 million in compensation—and contends that the stolen ETH constitutes North Korean-linked assets that should be used to satisfy those judgments. Kelp DAO suffered a $292 million hack on April 18; the attacker was identified as TraderTraitor, a subgroup of the North Korean state-sponsored hacking group Lazarus Group. Aave Labs previously proposed unfreezing the seized funds and transferring them into the “DeFi United” fund to compensate rsETH holders—but this legal action by Gerstein Harrow may significantly delay compensation for victims. Members of the Arbitrum DAO community have criticized the move, arguing it shifts the burden of North Korea’s debts onto another set of victims, thereby exacerbating the original harm. Gerstein Harrow had previously pursued litigation related to the 2023 Heco Bridge hack involving Teth
Odaily Odaily PaperImperium, the head of MegaETH, disclosed on X platform that documents from the U.S. District Court for the Southern District of New York show that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million in ETH assets that were previously frozen during the KelpDAO hacking incident. In response, on-chain detective ZachXBT posted on X platform, stating that certain U.S. law firms are using his investigative work and on-chain forensics to help victims of some hacking incidents file legal claims. However, this practice may actually slow down or hinder victims from receiving compensation or recovering funds.ZachXBT added that in previous hacking incidents involving the Lazarus Group, such law firms often stepped in after on-chain fund tracking or freezing was completed, proposing subsequent legal actions that were weakly related to the crypto incidents themselves. Similar "free-riding claims" strategies were used in events like Harmony and Bybit. He called on the crypto community to establish a DAO to resist such practices.
: MegaETH lead PaperImperium disclosed on X platform a court document from the U.S. District Court for the Southern District of New York, showing that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million worth of ETH assets that were previously frozen in the KelpDAO hacking incident. The plaintiffs are attempting to use these funds to enforce outstanding judgment compensation in cases related to North Korea's involvement in terrorism, kidnapping, and other matters spanning several years. They have also filed a motion to serve legal notice to the Arbitrum DAO via alternative means, treating it as an accountable "partnership." The court document further notes that the Arbitrum DAO has a Security Council governed by ARB holders, which has the authority to take action in emergencies. As a result, relevant members who refuse to comply may face legal consequences such as contempt of court. Market observers believe that this case could set an important precedent for the U.S. judicial system to directly constrain DAO governance structures, further highlighting the compliance pressure faced by DeFi protocols under real-world legal frameworks.
Odaily Seer Prophet Channel monitoring shows that Polymarket has a new event "Elon Musk wins at least $10 billion settlement from Altman/OpenAI". Currently, the probability of "Yes" is 14%.The rules for this event contract are: As of 23:59 EST on December 31, 2026, if Elon Musk's lawsuit against Altman (Case No.: 4:24-cv-04722-YGR, U.S. District Court for the Northern District of California) results in a jury verdict, court judgment, or settlement of no less than $10 billion in cash or equivalent compensation at the initial trial stage, the market will settle as "Yes"; otherwise, it will settle as "No". If the case is mistried, the initial trial compensation does not meet the threshold, or the compensation is solely non-monetary relief, the judgment will be "No". Results from retrials or appeals will not be considered in this market. The primary basis for judgment will be official information from the U.S. court system, supplemented by consensus reports from credible media outlets.The trial of Elon Musk's lawsuit against OpenAI commenced on April 27 local time with jury selection. The two sides escalated their public confrontation on the X platform before the trial. OpenAI called the lawsuit baseless, while Elon Musk repeatedly posted attacking Sam Altman as "Scam Altman." The core of the case revolves around the controversy over OpenAI's transition to a for-profit entity. Elon Musk accuses OpenAI of betraying its original non-profit founding pledge, seeks up to $134 billion in damages, demands the reversal of the for-profit restructuring, and the removal of relevant executives. The liability determination phase is expected to last until mid-May.Odaily Seer Prophet Channel continues to monitor prediction markets. See the changes before the pricing.
the CFTC has filed a lawsuit in the U.S. District Court for the Southern District of New York, aiming to prevent New York state from enforcing its gambling laws on federally regulated prediction market platforms. The CFTC argues that federal law grants it exclusive regulatory authority over such markets and is seeking a permanent injunction against New York's enforcement actions. CFTC Chairman Michael Selig stated that registered exchanges face multiple state-level lawsuits, which undermine the CFTC's sole regulatory authority over prediction markets. Previously, New York state had sued Binance and Gemini, alleging their products violated state gambling rules, and had also requested Kalshi to cease certain sports-related contracts. Currently, 37 states and Washington D.C. have submitted amicus briefs supporting Massachusetts' enforcement against Kalshi, arguing that federal law has not legalized sports betting and has not abolished the states' historical regulatory powers.
Sun Yuchen has recently filed a lawsuit against World Liberty Financial in the U.S. District Court for the Central District of California to protect his legitimate rights and interests as a $WLFI token holder. Sun stated that the World Liberty project team unilaterally froze all his tokens, stripped him of his voting rights on governance proposals, and threatened to permanently “burn” his tokens—without providing any reasonable explanation. He emphasized that he had repeatedly attempted to resolve the dispute through non-litigious means, but the project team refused to unfreeze his tokens or restore his rights as a token holder, leaving him with no choice but to pursue legal action. Additionally, Sun explicitly opposes World Liberty’s new governance proposal released on April 15. Under this proposal, token holders who do not actively accept its terms will have their tokens locked indefinitely; early purchasers’ tokens are subject to a two-year lock-up period followed by a two-year vesting schedule. As Sun’s tokens remain frozen, he is currently unable to vote on this proposal.
According to Cointelegraph, stablecoin issuer Circle faces a class-action lawsuit in the U.S. District Court for the District of Massachusetts for failing to freeze stolen funds during the Drift Protocol hack on April 1. Plaintiffs allege that attackers transferred approximately $230 million worth of USDC from Solana to Ethereum via Circle’s cross-chain transfer protocol (CCTP) within hours—and that Circle failed to intervene. The lawsuit accuses Circle of aiding and abetting conversion and of negligence. Cryptocurrency analytics firm Elliptic previously suspected the attack may be linked to North Korea–backed hackers; the stolen funds were subsequently converted into ETH and laundered through Tornado Cash.
According to Politico, the U.S. Senate Banking Committee’s cryptocurrency bill—led by Chairman Tim Scott—has become mired in controversy over a provision designed to protect DeFi developers, making bipartisan consensus difficult to achieve. The contested provision would exempt non-custodial software developers who do not control users’ funds from registering as money transmitters or complying with anti-money laundering (AML) requirements. Law enforcement organizations—including the National Sheriffs’ Association and the National District Attorneys Association—have separately written to Congress warning that the provision would undermine efforts to combat financial crime; Senator Chuck Grassley, Chairman of the Senate Judiciary Committee, has likewise expressed similar concerns. The crypto industry, however, views the provision as central to the bill: Amanda Tuminelli, Executive Director of the DeFi Education Fund, has explicitly stated that no textual modifications to the provision will be accepted. Democratic Senators Catherine Cortez Masto and Mark Warner are now pushing for revisions to the provision. If bipartisan agreement cannot be reached, the bill may advance without Democratic support—a scenario that could jeopardize its ability to secure the bipartisan majority required for passage on the Senate floor.