Aave, a major DeFi (decentralized finance) protocol, froze markets across its networks after Binance Ethereum hot wallets transferred assets to an exploiter address around 9 p.m. UTC on Oct. 29. One transaction included 63 ERC-20 tokens and 167,464 ETH, while a second transferred 28,006 ETH and funds associated with Arbitrum, Optimism and Avalanche. Aave later resumed its V3 and V4 markets, saying its smart contracts were unaffected and users' borrowing positions remained sufficiently collateralized. As a precaution, it set the LTV (loan-to-value ratio) for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP to zero. Bitcoin and Ethereum fell 3.46% and 3.93%, respectively, over 24 hours, while Aave declined 5.67%; broader crypto-market liquidations exceeded $1.50 billion, mainly affecting long positions.