Overview
- The attacker moved funds on Thursday, Oct. 29 by depositing about 60 million USDT into Aave V3 and borrowing roughly 19,762 wrapped Ether before Aave imposed emergency limits.
- Binance said on Oct. 30 that roughly $6.3 billion in assets were affected, about $3 billion have been frozen through partner action, and the company will cover customer losses while forensics continue.
- Aave’s risk teams froze hundreds of lending reserves across V3 and V4 to stop new borrowing from the attacker while allowing repayments, withdrawals, and normal liquidations to proceed.
- Stablecoin issuers intervened to restrict stolen tokens, with Tether reporting more than $1.57 billion in USDT frozen and Circle saying it had restricted over $800 million in USDC.
- The incident shows how stolen assets can be routed across blockchains and through lending protocols, which complicates recovery because native assets like ETH cannot be centrally frozen and could raise longer-term systemic risks.