Aave Freezes Credit Markets to Block Hacker Borrowing; Stablecoin Issuers Freeze Funds

Aave froze its credit markets to prevent a hacker from borrowing additional assets, according to the source. Tether and Circle also froze funds within 10 minutes. The coordinated response highlights two layers of containment during an exploit: protocol-level lending-market freezes that can halt further borrowing, and issuer-level action that can restrict movement of compromised stablecoin funds. The immediate focus is whether the containment measures hold and whether affected Aave markets reopen normally. The event keeps protocol security, governance response speed, and the role of centralized stablecoin issuer intervention in focus for the Aave ecosystem.