Aave Freezes V3 and V4 Markets Due to Abnormal Activity in Binance-Related Wallets

TechFlow reported that on October 30, Aave issued an official statement saying it had received reports of a potential incident involving Binance-related wallets. Aave contracts were unaffected, and positions remained overcollateralized. As a precautionary measure, all DAO-operated V3 and V4 markets have been frozen.

The freeze will suspend new deposits and borrowings, while users can still withdraw funds and repay existing positions.

TechFlow previously reported that Binance was suspected of a large-scale abnormal outflow. On-chain monitoring showed that the amount involved reached billions of dollars, and some stablecoins had been frozen by their issuers. CZ said the actual loss may slightly exceed $1 billion and would be fully covered. Aave's action is a precautionary risk-control measure and is not equivalent to an attack on the protocol itself. Please be aware of the related risks; TechFlow will continue to monitor the situation.

Source: TechFlow