Aave Seeks to Lift Restraining Notice on Frozen Ethereum

Aave LLC has filed an emergency motion in a New York court to lift a restraining notice on approximately $71 million worth of frozen Ethereum (ETH). The notice was served by Gerstein Harrow LLP, which claims the funds can satisfy unpaid judgments against North Korea.

Aave disputes this claim, arguing that stolen assets do not become the property of judgment creditors. According to Aave's filing, 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.

The motion also 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. Aave is seeking a fast hearing or the requirement of a $300 million bond if the freeze remains in place.