Aave Freezes Reserves After Binance Incident; Withdrawals Remain Available

Emergency restrictions were executed, risk provider says

Aave risk provider LlamaRisk says guardian multisigs executed reserve freezes following the Binance security incident. Its response report, updated at 01:00 UTC on October 30, identifies 175 V3 reserves across 16 networks and 117 V4 reserves across four networks.

The report places execution between 21:42 and 23:04 UTC on October 29. These are reported completed actions, not merely a governance proposal. LlamaRisk says the permissioned Horizon RWA market remained open and no market was fully paused.

A freeze is not a complete shutdown

Aave's technical risk-control documentation distinguishes freezing from pausing. Freeze functions prevent new supply and new borrowing while preserving withdrawals and repayments. A pause can stop those additional operations too. The labels therefore describe different restrictions, not interchangeable versions of the same action.

Withdrawal permission is also different from unlimited immediate liquidity. Aave's FAQ explains that withdrawals require enough unborrowed assets and must not leave an existing borrowing position outside its collateral constraints. An enabled withdrawal function does not guarantee that every requested amount can be removed at once.

Existing positions still carry market risk

LlamaRisk says liquidations continue during this freeze. Because additional supply is blocked, borrowers cannot use new deposits to add collateral while those restrictions apply.

For context, Aave's health-factor documentation describes a ratio that compares liquidation-weighted collateral with outstanding debt. A position becomes eligible for liquidation below one. Changes in collateral prices, borrowed-asset values and accrued debt can affect the ratio; a restriction on opening new positions does not fix those values in place.

Reopening remains conditional

LlamaRisk describes a staged unfreeze after attacker-fund movements stop and containment becomes clearer. Its report gives no guaranteed reopening time.

The practical distinction is between limiting new exposure and eliminating existing risk. This report should not be read as an instruction to deposit, withdraw or alter a position.

Follow our Binance incident coverage for exchange developments. Our custody guide explains how exchange balances differ from assets controlled through a wallet.

Information checked October 30, 2026, 05:35 UTC. Incident-specific details reflect LlamaRisk's 01:00 UTC report.