Svmuu News: Before a Manhattan federal court hearing, lawyers for North Korean victims are attempting to redefine the April rsETH attack on Aave as "fraud" rather than "theft," in order to maintain a freeze order on $71 million worth of ETH. The lawyers argue that the attacker used worthless collateral to borrow assets and failed to repay, constituting a fraudulent loan transaction, aiming to use these frozen assets to satisfy terrorism-related judgments under the Terrorism Risk Insurance Act. Previously, hackers linked to the Lazarus Group exploited a cross-chain bridge vulnerability to mint unbacked rsETH and borrowed approximately $230 million in assets from Aave, of which $71 million was intercepted by Arbitrum developers. The victims' lawyers are also questioning Aave's eligibility to file a defense, pointing out that its terms of service state it has no control over user assets. Additionally, DeFi United has raised $327 million, exceeding the amount in dispute.