Gerstein Harrow LLP's Controversial Claim on $71M Stolen Lazarus Funds

Severity: High (Score: 71.2)

Sources: News.Bitcoin, Cryptonews

Summary

On May 3, 2026, onchain investigator ZachXBT accused U.S. law firm Gerstein Harrow LLP of attempting to claim $71 million in frozen ether linked to the Lazarus Group's KelpDAO exploit. The firm is leveraging a 2015 court judgment against North Korea, which is unrelated to the current hack, to redirect the funds away from actual victims of the April 2026 exploit. The Lazarus Group is suspected of stealing approximately $290 million from KelpDAO on April 18, 2026, by exploiting a vulnerability in its Layerzero V2 bridge. The Arbitrum Security Council froze 30,766 ETH to prevent further laundering of the stolen assets. ZachXBT criticized the law firm for its predatory tactics, which he claims hinder the recovery process for genuine victims. The situation has sparked outrage within the crypto community, leading to calls for the formation of a decentralized autonomous organization (DAO) to take legal action against Gerstein Harrow. The ongoing exploitation of frozen asset pools introduces new challenges in the recovery of stolen funds. The outcome of the legal battle over the $71 million remains uncertain. Key Points: • ZachXBT accuses Gerstein Harrow LLP of fraudulent claims on $71M in frozen crypto assets. • The Lazarus Group exploited KelpDAO, stealing $290 million on April 18, 2026. • The legal dispute complicates recovery efforts for actual victims of the hack.

Key Entities

• Lazarus Group (apt_group)
• Data Breach (attack_type)
• Drift Protocol (company)
• Gerstein Harrow LLP (company)
• KelpDAO (company)
• Arbitrum (company)
• North Korea (country)
• T1190 - Exploit Public-Facing Application (mitre_attack)
• LayerZero (platform)