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The lawyer characterized the Aave hacking incident by North Korean hackers as fraud to maintain the $71 million asset freeze.
Mars Finance News, before the Manhattan Federal Court hearing, the victim’s lawyer from North Korea attempted to reframe the rsETH attack incident on Aave as “fraud” rather than “theft” in order to maintain the freeze order on $71 million worth of ETH. The lawyer argued that the attacker borrowed assets using worthless collateral and failed to repay, constituting a fraudulent loan transaction, intended to use these frozen assets to satisfy terrorism-related judgments under the Terrorism Risk Insurance Act. Previously, hackers associated with Lazarus Group minted unsecured rsETH through cross-chain bridge vulnerabilities and lent out approximately $230 million worth of assets on Aave, with $71 million intercepted by Arbitrum developers. The victim’s lawyer also questioned Aave’s standing to defend, pointing out that its service terms do not grant control over user assets. Additionally, DeFi United has raised $327 million, exceeding the disputed amount.