Frozen ETH worth $71M dey face TRIA court fight against Aave

For Manhattan federal court, lawyers dey try move $71 million worth of Frozen ETH go give victims of terrorism after April Aave cross-chain exploit wey dem report cause about $230 million losses. The victims 30-page filing talk say the matter na "fraud," no be "theft." Dem talk say US fraud law fit give wrongdoer small ownership rights through deception, we fit weaken Aave effort to block the release of the Frozen ETH. Legally, the team dey invoke the Terrorism Risk Insurance Act (TRIA). If court accept say TRIA apply, victims wey get link to state sponsors of terrorism fit pursue claims related to assets wey dey under US jurisdiction, and that go change how ownership/control dey treated under New York property-law arguments. Another dispute na Aave standing. The filings quote Aave terms of service, talk say e no get "possession, custody or control" over user funds — na important DeFi principle. On-chain context: Chainalysis and TRM Labs attribute the exploit to North Korea’s Lazarus Group. The attackers mint unauthorized rsETH, post am as false collateral on Aave, and borrow real ETH against those deposits. Developers reportedly freeze about $71 million on Arbitrum before liquidation. Separately, the Aave-linked recovery fund DeFi United don raise about $327.95 million — more than four times the Frozen ETH wey dey dispute ahead of May 6 hearing. The ruling fit set precedent for DeFi legal standing and handling of internationally linked assets for US courts.