Aave Crypto Freezes 292 Reserves After Binance Hot Wallet Hack

Key Insights: Aave crypto froze 292 reserves after a Binance-linked wallet borrowed 19,762 WETH. The freeze blocks new deposits and borrowing; withdrawals and repayments remain available. LlamaRisk said the loan remains overcollateralized and subject to normal liquidation. Aave crypto markets froze 292 reserves after a wallet linked to the Binance hack borrowed WETH against USDT collateral. The wallet supplied 60 million USDT to Aave V3 Ethereum Core and borrowed 19,762 WETH on October 29. LlamaRisk valued the loan at about $44.6 million when it was opened. Aave’s first freeze followed roughly 40 minutes later. The restrictions block new deposits and borrowing across affected reserves, but users can still withdraw and repay. Liquidations also continue. LlamaRisk said the position remains overcollateralized and does not put Aave suppliers at risk.

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