The lawyer classified the Aave incident involving a North Korean hacker attack as fraud to maintain the freezing of $71 million in assets

According to FinanceFeeds, the victim's lawyer from North Korea attempted to redefine the rsETH attack incident that occurred on Aave as "fraud" rather than "theft" before a hearing at the Manhattan federal court, in order to maintain a freeze order on assets worth $71 million in ETH.

The lawyer argued that the attacker borrowed assets using worthless collateral and did not repay, which constitutes a fraudulent loan transaction, aiming to use these frozen assets to pay for terrorism judgment compensation under the Terrorism Risk Insurance Act.

Previously, hackers associated with the Lazarus Group minted unsecured rsETH through a cross-chain bridge vulnerability and borrowed approximately $230 million in assets from Aave, of which $71 million was intercepted by Arbitrum developers. The victim's lawyer also questioned Aave's standing, pointing out that its terms of service state it does not have control over user assets. Additionally, DeFi United has raised $327 million, exceeding the amount in dispute.