🚨 The Binance hacker may have made a very smart DeFi move.
First, Tether froze around $1.5 billion in USDT.
Then, Circle froze another $800 million in USDC.
At first, it looked like the hacker’s funds were completely trapped.
But apparently, the hacker may have planned ahead.
Instead of keeping the stolen USDT in a wallet, he allegedly deposited it into Aave as collateral and borrowed ETH against it.
Then he walked away with the ETH. 😳
Here’s where it gets interesting:
🔹 Tether can freeze USDT.
🔹 But it cannot directly freeze the ETH that was already borrowed.
🔹 Aave could be left with frozen collateral while the hacker still holds liquid ETH.
If the frozen collateral cannot be recovered or used to repay the loan, the situation could become very complicated.
Two major companies froze billions of dollars worth of stablecoins almost instantly.
But the hacker may have used DeFi to move the borrowed assets beyond the reach of those freezes.
This is a crazy example of how powerful and complicated DeFi can be. 🧐
#Binance #Crypto #DeFi #Aave #ETH #USDT #USDC