🧊 THE BINANCE HACKER TRIED TO USE AAVE AS AN ATM
Before the stolen stablecoins got frozen, one exploiter wallet moved fast:
→ deposited about $60M USDT into Aave V3 Ethereum
→ borrowed 19,762 WETH, roughly $44.6M
→ all between 20:58 and 21:01 UTC, about 40 minutes before the first freeze
Then Aave hit the brakes on everything it runs. 175 V3 reserves across 16 networks and 117 V4 reserves across 4 networks are frozen. No new deposits, no new borrowing. Withdrawals and repayments still work.
Aave says its contracts were not touched, and Stani Kulechov says there is no bad debt because the position is over-collateralized with stable collateral.
So the attacker swapped "freezable" USDT for ETH that nobody can freeze. Smart move, and it shows exactly where DeFi is exposed when a CEX gets drained.
Was freezing all markets the right call by Aave, or an overreaction that punishes normal users?
$ETH $AAVE #Aave #DeFi #BinanceHack #ETH