Aave Seeks to Block $71 Million ETH Seizure on Arbitrum Following rsETH Exploit

Aave has filed a court challenge to block a New York restraining notice that froze $71 million in ETH on Arbitrum following the rsETH exploit. The lender argues the frozen funds belong to protocol users rather than North Korea-linked judgment creditors, as claimed by authorities. The restraining order had frozen the assets after the exploit, but Aave contends the seizure violates user rights and misattributes ownership of the collateral.