How the Binance hacker used Aave to dodge the stablecoin freeze
A thread on the DeFi move drew about 3,100 likes.
Tether froze about $1.5 billion of stolen USDT and Circle froze about $800 million in USDC after the Binance hack. But the hacker had allegedly already moved part of the USDT into Aave.
There it was posted as collateral to borrow ETH. Tether can freeze the USDT left in the position, but it cannot freeze ETH that was already borrowed and moved out.
The result is frozen collateral on one side and liquid ETH in the attacker's hands on the other, a reminder that issuer freezes only reach the tokens the issuer controls.
