OPENING
Between 20:58 and 21:01 UTC on October 29, one wallet in the Binance hot-wallet exploiter's cluster supplied 60 million USDT on Aave V3 Ethereum Core and borrowed 19,762 WETH, worth about $44.6 million at the time, according to Aave risk service provider LlamaRisk. Aave guardian multisigs froze 175 reserves on Aave V3 across 16 networks and 117 reserves on Aave V4 across four networks between 21:42 and 23:04 UTC; a freeze blocks new supply and borrow positions while repayments, withdrawals and liquidations continue, and no market was paused.
KEY DETAILS
- Between 20:58 and 21:01 UTC on October 29, one wallet in the Binance hot-wallet exploiter's cluster supplied 60 million USDT on Aave V3 Ethereum Core and borrowed 19,762 WETH, worth about $44.6 million at the time, according to Aave risk service provider LlamaRisk.
- Aave guardian multisigs froze 175 reserves on Aave V3 across 16 networks and 117 reserves on Aave V4 across four networks between 21:42 and 23:04 UTC; a freeze blocks new supply and borrow positions while repayments, withdrawals and liquidations continue, and no market was paused.
- LlamaRisk says it is the exploiter's only position on Aave; it holds $59.9 million of USDT collateral against $43.8 million of debt, is over-collateralised, remains subject to normal liquidation and does not put Aave suppliers at risk.
- LlamaRisk says markets will stay frozen until the exploiter's funds stop moving and there is more clarity on containment from Binance, followed by a staged unfreeze; the Horizon RWA market was left open because its collateral is permissioned.
WHY IT MATTERS
Aave users can't add collateral while the freeze lasts. (Analysis, not a confirmed fact.)
IMPORTANT CONTEXT
- The response was posted on the Aave governance forum by LlamaRisk on October 30, 2026 (last updated 01:00 UTC).
- This is a protocol risk update, not investment advice.
- This article is informational and is not financial advice. Digital assets are volatile.
SOURCE
- Primary / main source: https://x.com/WuBlockchain/status/2116061415480111186
- Supporting: https://governance.aave.com/t/binance-hot-wallet-exploit-aaves-response/25954
- Supporting: https://www.tokenpost.com/news/technology/44325
- Supporting: https://cointelegraph.com/news/binance-linked-wallet-faces-possible-exploit-blockchain-researcher-warns
#Aave #DeFi #Binance