Aave froze all DAO-operated V3 and V4 markets on Oct. 29 as a precaution after the Binance exploit, pausing new deposits and borrows while withdrawals and repayments stayed open, per Aave.

Aave froze all DAO-operated V3 and V4 markets on Oct. 29 as a precaution after the Binance exploit, pausing new deposits and borrows while withdrawals and repayments stayed open, per Aave.

Risk provider LlamaRisk said one wallet linked to the Binance exploiter deposited about 60M USDT into Aave V3 Ethereum Core and borrowed 19,762 WETH worth roughly $44.6M between 20:58 and 21:01 UTC, about 40 minutes before the first freeze, per WuBlockchain.

The move followed Tether starting to freeze the hacker's USDT, swapping freezable USDT for WETH that cannot be frozen, effectively sacrificing about $16M in collateral haircut, per FabianoSolana.

Guardian multisigs signed freezes between 21:42 and 23:04 UTC, covering 175 V3 reserves across 16 networks and 117 V4 reserves across four networks, per WuBlockchain.

Aave said its contracts were unaffected, positions remain overcollateralized, and it aims to unfreeze as soon as possible, per Aave. That exploiter position was described as overcollateralized and its only position on Aave.