Aave Freezes Lending Reserves as Arbitrum Locks Binance-Linked Funds

Aave froze reserves on 16 Aave V3 and four Aave V4 networks after a wallet linked to the Binance hot-wallet exploit borrowed 19,762 wrapped Ether (WETH), while Arbitrum moved related assets to a frozen address. The transactions ran from 5:42 p.m. to 7:04 p.m. ET Oct. 29 (21:42–23:04 UTC), freezing 175 reserves on V3 and 117 on V4. The wallet had supplied $60 million in Tether (USDT) before borrowing WETH worth about $44.6 million. Users could not open new supply or borrowing positions or add collateral, but repayments and withdrawals remained open, and liquidations continued.