Aave Fights to Unfreeze $71M in Ethereum Trapped on Arbitrum Amid Sanctions Dispute

Aave is mounting a legal challenge against a New York court order freezing $71 million in Ethereum on the Arbitrum Layer 2 network. The protocol argues that the seized cryptocurrency belongs to individual users, not to entities subject to sanctions enforcement, raising critical questions about DeFi asset protection and regulatory authority over decentralized finance.