Aave froze all DAO-operated V3 and V4 markets after suspicious activity linked to a Binance exploiter. A connected wallet deposited $60 million USDT and borrowed 19,762 WETH worth approximately $44.6 million. New deposits and borrowing are paused, but withdrawals and loan repayments remain available. Decentralized lending protocol Aave has temporarily frozen its DAO-operated V3 and V4 markets following a potential security incident involving wallets linked to a Binance exploiter. According to Aave risk service provider LlamaRisk, a wallet associated with the exploiter deposited approximately $60 million in USDT into Aave V3 Ethereum Core on October 29. Between 20:58 and 21:01 UTC, the wallet borrowed 19,762 WETH, valued at roughly $44.6 million. The transactions occurred approximately 40 minutes before the first market freeze. The Aave V3 V4 freeze was introduced as a precaution while the situation is investigated. Importantly, Aave stated that its smart contracts were unaffected. The protocol has not reported that the suspicious activity resulted from a vulnerability in Aave’s contracts. Aave V3 V4 Freeze Affects 292 Reserves The precautionary action covers a substantial portion of Aave’s DAO-operated lending infrastructure. According to the reported figures, the freeze affects: 175 Aave V3 reserves across 16 blockchain networks. 117 Aave V4 reserves across four blockchain networks. That brings the total to 292 frozen reserves across the two versions. The Aave V3 V4 freeze prevents users from making new deposits or opening additional borrowing positions in the affected markets. However, existing users can still withdraw their assets and repay outstanding loans. This distinction matters because a market freeze does not necessarily mean customer funds are inaccessible. Aave’s response is designed to limit additional exposure while allowing users to manage existing positions. The wallet linked to the Binance exploiter reportedly holds only one position on Aave. LlamaRisk also confirmed that the position remains over-collateralized, meaning the value of its deposited collateral exceeds the value of its outstanding loan. Aave Freezes V3 and V4 Markets After Binance Exploiter Deposits $60M USDT and Borrows 19,762 WETH Aave risk service provider LlamaRisk said one wallet linked to the Binance exploiter deposited about 60 million USDT into Aave V3 Ethereum Core and borrowed 19,762 WETH (worth… pic.twitter.com/rqvcSXknCS — Wu Blockchain (@WuBlockchain) October 30, 2026 When Will Aave Restore Normal Operations? The Aave V3 V4 freeze highlights how decentralized finance protocols can respond to unusual activity even when their underlying contracts remain secure. Lending platforms must consider risks beyond smart contract vulnerabilities, including suspicious collateral movements and potential liquidation scenarios. Aave said it intends to lift the restrictions as soon as possible. However, no confirmed reopening time has been provided. Users with existing positions should monitor official Aave communications for updates on market availability. They should also review their collateral and borrowing positions, particularly if market volatility increases. For now, Aave’s precautionary freeze affects 292 reserves, but withdrawals and repayments remain operational. The incident underscores the importance of risk monitoring in decentralized lending, where suspicious activity involving external wallets can trigger platform-wide protective measures.
Bitcoin Ethereum ETF Flows: BTC Gains, ETH Loses $105M
Spot Bitcoin ETFs recorded $17.07 million in net inflows on October 29, marking four consecutive days of positive flows. Spot Ethereum ETFs suffered $105 million in net outflows, extending their withdrawal streak to four days. The combined net outflow of approximately $87.93 million highlights diverging investor demand for BTC and ETH funds. US spot cryptocurrency exchange-traded funds recorded contrasting results on October 29, with Bitcoin attracting fresh capital while Ethereum continued experiencing withdrawals. According to the reported data, spot Bitcoin ETFs recorded $17.0719 million in net inflows, marking their fourth consecutive day of positive flows. Meanwhile, spot Ethereum ETFs registered $105 million in net outflows, also extending their streak to four consecutive trading days. The latest Bitcoin Ethereum ETF flows reveal a noticeable difference in investor activity between the two largest cryptocurrencies. Although Bitcoin’s inflows were relatively modest, the continued positive streak suggests that demand for BTC investment products has remained resilient. Ethereum, however, is facing a more challenging environment as investors continue withdrawing capital from its spot ETFs. Across the two categories, the combined daily result was approximately $87.93 million in net outflows. This means Ethereum’s withdrawals more than offset the money entering Bitcoin funds. Why Bitcoin Ethereum ETF Flows Matter The divergence in Bitcoin Ethereum ETF flows provides useful insight into institutional and traditional investor behavior. Spot cryptocurrency ETFs allow investors to gain exposure to digital assets through regulated investment products without directly managing cryptocurrency wallets. Because these funds are accessible through traditional brokerage accounts, their daily flows are closely watched as indicators of market demand. Bitcoin’s fourth consecutive day of inflows suggests that investors are continuing to allocate capital to BTC-focused products. However, the relatively small inflow of $17.07 million does not necessarily indicate strong buying momentum across the entire Bitcoin market. Ethereum’s $105 million withdrawal is more significant in dollar terms. A fourth consecutive day of negative flows may indicate that investors are reducing their exposure to ETH funds or reallocating capital elsewhere. Still, ETF outflows do not automatically mean all Ethereum investors are selling. Daily fund flows represent activity within specific investment products rather than the entire cryptocurrency market. Spot Bitcoin ETFs Record $17.07 Million in Net Inflows; Spot Ethereum ETFs See $105 Million in Net Outflows On October 29 (ET), spot Bitcoin ETFs recorded total net inflows of $17.0719 million, their fourth consecutive day of net inflows. Spot Ethereum ETFs recorded total net… pic.twitter.com/7UAIhI3mNn — Wu Blockchain (@WuBlockchain) October 30, 2026 Can Bitcoin Maintain Its ETF Inflow Streak? The latest Bitcoin Ethereum ETF flows raise questions about whether Bitcoin can maintain its positive momentum while Ethereum continues struggling. For Bitcoin, additional inflows could provide support if they remain consistent and strengthen over the coming sessions. A sustained increase in ETF demand may help absorb available BTC supply and improve market sentiment. Ethereum, meanwhile, may need a reversal in fund flows to restore confidence among ETF investors. If withdrawals continue, they could add pressure to ETH market sentiment, particularly during periods of weak spot demand. However, ETF flows alone cannot predict the direction of cryptocurrency prices. Broader market liquidity, derivatives activity and macroeconomic conditions also influence Bitcoin and Ethereum. The October 29 figures do not establish whether the current streaks will continue into November. For now, Bitcoin’s four-day inflow streak and Ethereum’s four-day outflow streak highlight a growing difference in demand for their respective investment products. Investors will be watching upcoming sessions to see whether Bitcoin maintains its advantage or Ethereum begins attracting fresh capital again.