Aave has lifted the preventive freeze imposed after funds linked to a Binance hot-wallet compromise appeared in its markets, restoring normal operations across all Aave V3 and V4 markets. The freeze began at 21:42 UTC and ended at 23:04 UTC on Oct. 29, 2026, covering 175 V3 reserves across 16 networks and 117 V4 reserves across four networks. Aave initially paused new deposits and borrowing, while users could continue withdrawing assets and repaying loans. The protocol said its smart contracts were unaffected and user positions remained fully collateralized. As a continuing precaution, LTV remains at zero for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP, preventing those assets from serving as collateral for new borrowing. Attackers drained more than 195,000 ETH and millions of dollars in altcoins from Binance hot wallets, including transfers of 167,464 ETH and 63 other tokens followed by 28,006 ETH from another Binance wallet. The attacker dispersed funds across more than 20 wallets, sold assets including UNI, LINK and AAVE on decentralized exchanges, and deposited $60 million in USDT into Aave V3 Ethereum Core before borrowing 19,762 WETH. The position remained overcollateralized, with $59.9 million of collateral against $43.8 million of debt. The Horizon RWA market remained operational, and Aave avoided a full contract pause. Before the phased unfreezing, LlamaRisk planned to use Aave’s Risk Steward mechanism to reduce borrowing capacity across 27 V3 reserves and six V4 credit lines, removing about $3.7 billion and $130 million in unused capacity, respectively. Binance said additional breach points had been identified, about $3 billion in assets had been frozen with partners, and losses would be reimbursed through SAFU and company funds. Bitcoin fell to $76,320 and ether to $2,170, while AAVE and LINK each dropped 9%, UNI fell 8% and ARB declined 6%.