Yes. Aave confirmed on Oct 29 that all DAO-operated markets across V3 and V4 were frozen as a precaution after reports of an incident affecting Binance-affiliated wallets, with founder Stani Kulechov reposting that markets were temporarily frozen, assets safe and positions overcollateralized (post).
The freeze pauses new deposits and borrows; users can still withdraw and repay existing positions, per Aave's quoted statement.
Borrowers cannot add collateral while reserves stay frozen, with repaying debt described as the available way to manage positions (report).
Aave said its contracts were unaffected. Its response account says the RWA market Horizon stayed open because its collateral is permissioned, and that markets stay frozen until the exploiter funds stop moving and there is clarity on containment from Binance, with a staged unfreeze and no fixed date, same report.
Context for the move is claims the attacker deposited stolen USDT into Aave and borrowed ETH before stablecoin freezes, leaving frozen collateral risk; those borrowing claims are allegation posts, not Aave's statement.