According to CoinDesk, the legal team representing the victims of the KelpDAO hacking incident has moved to change legal arguments to seize $71 million worth of ETH frozen in connection with the case. In a court filing, they argued, “This incident is not mere theft, but a loan based on collateral fraud,” adding that “assets acquired through fraudulent means can also be legally recognized as owned.” They also explained that the North Korea-linked Lazarus Group borrowed actual ETH using worthless rsETH as collateral, emphasizing that assets related to North Korea can be seized under the U.S. Terrorism Risk Insurance Act (TRIA). Previously, AAVE had demanded the lifting of the freeze order, stating, “Temporary possession of stolen assets does not imply ownership. The frozen assets belong to the victims who were robbed, not to the thieves (North Korea) who stole them.”
