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North Korean terror victims intensify claims against the AAVE hacking incident
CryptoWorld News reports that North Korean terror victims have changed their legal strategy in claims related to the AAVE hacker incident, seeking to recover $71 million from frozen Ethereum.
In new filings submitted to the Southern District Court of New York, they argue that the April 18 RSETH incident was not theft but fraud, countering AAVE’s attempt to revoke the notice of restricted asset release.
Lawyers point out that under U.S. law, property obtained through deception by fraudsters can be lawfully owned.
The case stems from a cross-chain bridge attack last month, which resulted in AAVE losing approximately $230 million.
The attacker is believed to be linked to North Korea’s Lazarus group, using unsecured RSETH tokens as collateral to borrow real Ethereum on the AAVE lending market.
Developers associated with the Arbitrum blockchain intercepted about $71 million before the funds were withdrawn.
The filing also references the Terrorism Risk Insurance Act (TRIA), which allows court judgments won against state-sponsored terrorists to be recovered from property held in the United States.