Aave freezes lending markets after Binance exploiter borrows against funds
Aave moved to freeze key lending markets across multiple networks after an attacker linked to an exploit of Binance wallets deposited $60 million in USDT and borrowed Ether.
Decentralized finance lending protocol Aave froze markets across several blockchains following an exploit tied to Binance wallets, according to reports relayed by Aggr News, SolanaFloor, and Watcher.Guru. Solid Intel reported that $200 million was transferred out, likely stolen by the Binance hackers, prompting actions to prevent the perpetrator from borrowing further against stolen assets.[1][2][3][7][8]
The exploiter deposited $60 million in USDT into Aave to borrow Ether against the collateral, according to accounts from crypto traders Kook and Hiraweb3. Hiraweb3 reported that the attacker borrowed 19,762 WETH, valued at roughly $44.6 million, and noted that Aave froze 292 reserves across multiple networks in response.[6][9]
The restrictions encompassed the majority of Aave's activity. DefiLlama's 0xngmi stated that the freezes affected Aave v3 on Ethereum mainnet, v4 markets, Base v3, and Avalanche v4, which together account for almost 90% of the protocol's total value locked. Screenshots of the Aave user interface confirmed that affected assets—including ETH, Wrapped eETH, and USDT—were paused to prevent new supply, borrowing, or rate swaps, while allowing withdrawals and debt repayments to remain functional.[1][4][5][9]
Key facts
- Aave froze lending markets across multiple networks to prevent a Binance hacker from borrowing against funds.
- Solid Intel reported that $200 million was transferred out, likely stolen from Binance.
- The exploiter deposited $60 million in USDT on Aave and borrowed 19,762 WETH worth approximately $44.6 million, according to Hiraweb3 and Kook.
- Aave reportedly froze 292 reserves across multiple networks in response to the exploit.
- DefiLlama's 0xngmi stated that frozen markets include Ethereum v3, v4, Base v3, and Avalanche v4, comprising almost 90% of Aave's total value locked.
- Aave interface notices indicated that frozen markets disabled new deposits, borrowing, and rate swaps, while withdrawals and repayments remained open.
Sources · 8 sources
- SO
SolanaFloor@SolanaFloorPost on X ·
JUST IN: @Aave freezes lending markets to prevent the @Binance hacker from borrowing against stolen assets. https://t.co/8bVXH1k9FT
Open source - AN
Aggr News@AggrNewsPost on X ·
AAVE FREEZES LENDING MARKETS TO PREVENT BINANCE HACKER BORROWING: ONCHAIN
Open source - SI
Solid Intel 📡@solidintel_xPost on X ·
INTEL: AAVE FREEZES LENDING MARKETS TO PREVENT BINANCE HACKER BORROWING $200M transfered out, likely stolen from the Binance hackers
Open source - DN
DEGEN NEWS@DegenerateNewsPost on X ·
NEW: @aave HAS FROZEN ITS V3 ETHEREUM MARKETS AFTER THE @binance HACKER BORROWED AGAINST STOLEN ASSETS SOURCE: https://t.co/i99pQfyTnK https://t.co/rWL62CLqjL
Open source - DN
DEGEN NEWS@DegenerateNewsPost on X ·
NEW: @DefiLlama'S @0xngmi SAYS @aave HAS FROZEN MARKETS MAKING UP "ALMOST 90%" OF ITS TVL AFTER THE @binance HACK https://t.co/oFnytvTnAe
Open source - KO
kook@KookCapitalLLCPost on X ·
the binance hacker parked $60m of $usdt on aave and borrowed $eth against it north korea is a defi degen now.....
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: $AAVE freezes lending markets on Avalanche to prevent Binance hacker from borrowing funds.
Open source - CB
Crypto BriefingArticle ·
Aave freezes Avalanche lending markets to block suspected Binance hacker Aave's freeze highlights DeFi's vulnerability to hacks, raising questions about decentralization and the balance between security and accessibility. The post Aave freezes Avalanche lending markets to block suspected Binance hacker appeared first on Crypto Briefing .
Open source - HI
hira@Hiraweb3Post on X ·
DeFi just hit the emergency button. I’m watching Aave freeze 292 reserves across multiple networks after a Binance wallet exploit exposed a serious risk. The attacker deposited $60M in USDT and borrowed 19,762 WETH worth roughly $44.6M. I see this as a stress test for DeFi risk management, not a failure of Aave’s smart contracts. Aave moved fast to block new deposits and borrowing while keeping withdrawals and repayments open. What stands out to me is how one security incident can disrupt lending markets across an entire ecosystem. I believe the real test now is whether DeFi can contain the damage without destroying user confidence.
Open source