Aave Seeks to Lift Restraining Notice on Frozen Ethereum

Aave has filed an emergency motion with a New York court to lift a restraining notice on frozen Ethereum (ETH) linked to the April 18 rsETH incident.

The company argues that the stolen assets do not become a judgment debtor's property, and the freeze could delay user withdrawals and recovery. According to Aave, no court has found that North Korea or any connected party carried out the hack, and the immobilized assets belong to users who suffered losses during the exploit.

Aave claims that plaintiffs relied on 'conjecture from posts on the internet' and that their theory 'defies logic, common sense, and the law.'

The dispute involves over $71 million in frozen ETH claimed by plaintiffs as part of unpaid judgments against North Korea. Aave warns that keeping the ETH frozen could delay user withdrawals and recovery, causing 'irreparable harm' to Aave users, protocol operations, and the wider DeFi community.