Aave freezes Avalanche lending markets to block suspected Binance hacker

The DeFi lender moved to stop stolen AVAX from being used as collateral after a suspected multi-billion-dollar outflow from Binance hot wallets Aave has frozen its lending markets on Avalanche . The goal is to stop a suspected Binance hacker from using the protocol to borrow funds. The move follows what appears to be a large unauthorized outflow from Binance hot wallets. Initial assessments suggest around $3.3 billion has moved across multiple chains. The suspected drain began at approximately 20:24 UTC on October 29, 2026. Funds were then moved across several blockchains. A significant chunk landed on Avalanche. Approximately 1.81 million AVAX and 8.4 million USDT have been linked to the incident. That AVAX stash is the reason Aave acted.

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