DeFi lender Aave asks court to block $71 million crypto seizure tied to North Korea claims
The filing challenges a New York restraining notice that froze ETH on Arbitrum after the rsETH exploit, with Aave arguing the funds belong to users, not North Korea judgment creditors
AI Summary
Aave has filed a court motion to lift a restraining notice freezing approximately $71 million in ether on Arbitrum following last month's rsETH exploit, arguing the frozen funds belong to innocent Aave users rather than North Korean judgment creditors seeking to seize the assets. Aave contends that treating briefly stolen assets as the thief's property would violate basic property law and warns that keeping the funds frozen could trigger liquidations and destabilize the broader decentralized finance ecosystem. The dispute centers on 30,765 ETH that Arbitrum's Security Council froze after the April exploit, which has already divided opinion within Arbitrum's governance.