Aave has temporarily frozen all DAO-operated markets on V3 and V4 as a precaution following reports of a potential incident affecting Binance-affiliated wallets. The project states that all assets are safe and all positions remain overcollateralized, and that its contracts are unaffected by the incident. The freeze pauses new deposits, and Aave says it is closely monitoring the situation and will unfreeze the markets as soon as feasible.

AI summary of the linked source — not editorial content.

Story signal · how it spread on X · via Elfa

as of
Spread
i
Distinct X and Telegram accounts Elfa counted behind this story’s reports, summed over the thread. Not posts, not impressions.
69 accounts

first post
Leviathan +3.4 h later

AAVE reaction
i
Price change from the first post to 24 hours later (Hyperliquid). BTC over the same window is shown so a market-wide move is not mistaken for a reaction to this story. Not advice.
−5.7% 24h after post

$124.98 → $117.84
BTC −2.0% same window
Elfa measured −5.2% 1d · still measuring

AAVE attention
i
Share of crypto chatter on X this week versus the week before (Elfa mindshare, weighted by who posts). A spike means the story pulled attention; it says nothing about price.
2.7× vs prior 7d

0.518% of crypto chatter · rank #19
last 24h +174.0%

BNB reaction
i
Price change from the first post to 24 hours later (Hyperliquid). BTC over the same window is shown so a market-wide move is not mistaken for a reaction to this story. Not advice.
−1.5% 24h after post

$707.96 → $697.26
BTC −2.0% same window

Thread · 4 events · 1 mitigation · last update 29 Oct 22:18
  1. First reportBinance-exploiter activity raises concerns about borrowing ETH against stablecoins on Aave24 acc.
  2. UpdateBinance exploiter reportedly borrowed about $45 million in ETH against Aave collateral2 acc.
  3. MitigationAave freezes lending markets to block borrowing by the Binance exploiter31 acc.
  4. UpdateAave sets borrowing limits to zero across Ethereum and Base markets after Binance exploit12 acc.
  5. Leviathan published this article

All times UTC.

Cited posts

  • @david_seroy David Seroy đŸ”ïžFirst reportOn X ↗

    Most of Binance hack was stablecoins, which have been frozen. But, if hacker was able to post stablecoins as collateral in Aave, then borrow ETH, it's a major issue. Especially since ETH is rehypothecated in Aave. Same issue as rsETH hack. https://t.co/2DZSbceqKA

  • @Alex_LFG_ ALEX_LFGOn X ↗

    The alleged Binance hacker is reportedly depositing stolen USDT into Aave and borrowing ETH against it. The trick? Tether can freeze USDT, but it can’t freeze native ETH. The hacker could walk away with ETH and leave the debt unpaid. https://t.co/6fONSQlrMl

  • @Mr_Chonky ChonkyOn X ↗

    The Binance hacker deposited stolen $USDT on Aave and borrowed $ETH against it. He’s never paying it back. Doesn’t need to. USDT can be frozen by Tether. ETH can’t.

Show 3 more cited posts
  • @DelCrxptoOn X ↗

    The hacker is using $USDT to borrow $ETH on @aave
 The $ETH cannot be frozen & the $USDT being used as collateral can never be sold. What a mess!!! https://t.co/W0pYF2hogy

  • @73lV_ HokageOn X ↗

    good thing aave is freezing borrowing else the hacker will keep using USDT stolen to borrow other assets

  • @mzeller Marc ZellerOn X ↗

    Aave protocol will be fine. The hacker supplied 60M USDT and borrowed 19,762 wETH (~44.9M$) in 3 minutes, before Tether froze their address and before the Aave Guardian froze the Aave V3 Core reserves (46 min later). But USDT is real money backed by dollars, and the position is


63 more accounts posted about this · 6 Telegram channels (no public link)

TradersTrader calls tracked by Elfa · not advice

Positioning · AAVE

Open182 open positions · 175 long · 7 short

Tracked accounts lean long about 97% of the time, so a long-heavy book is normal, not a signal. As of 29 Oct 23:45 UTC.

Reaction since the first post

Since 29 Oct 21:11 UTC3 calls opened · 1 long · 2 short

Callers with a scored record

@hufhaus9 short · entry $126.61alpha −0.084 · 45% hit rate · 20 scored

Alpha, hit rate and sample size exactly as Elfa reports them.

Whole crypto market, not this story

Crowding2nd percentile · vs last 28 days, 50 typical
Pulse 24h98/100 · unusualness of new calls, 0–100, 50 typical, higher means more long than usual
Book97.1% long · 10,733 accounts

As of 30 Oct 00:20 UTC.

Social-monitoring data, not investment advice Elfa prices Hyperliquid post text from Xas of

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