When we mentioned legal implications, we were referring to the potential legal consequences for delegates and token holders who vote to retain profits from an NK criminal organization. Each delegate must be aware of the legal implications in their jurisdiction or where their company is registered.
Code is law, but in Paraswap’s code, governance has the power to vote on this proposal and decide whether to keep funds originating from an organized crime group in a restricted country under multiple jurisdictions. Therefore, you cannot argue that “code is law” to justify keeping these funds under your country’s court if you had the ability to return them.
As some community members have mentioned, it’s worth decentralizing this aspect so the DAO doesn’t have to make these decisions. In the meantime, a proposal describing a framework for handling these requests could be a good approach, forming a group to investigate them, with the part affected by the hack being required to fund the group in advance using their own resources.