{"id":132640,"date":"2026-10-30T17:07:59","date_gmt":"2026-10-30T16:07:59","guid":{"rendered":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/"},"modified":"2026-10-30T17:07:59","modified_gmt":"2026-10-30T16:07:59","slug":"binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx","status":"publish","type":"post","link":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/","title":{"rendered":"Binance Hacker Bypasses Stablecoin Freezes Using DeFi Protocols"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Binance Hacker Secures Stolen Funds Through DeFi Protocols \u2013 How TraderTraitor Bypassed Stablecoin Freezes Using Aave and UniswapX<\/p>\n\n<span class=\"anchor\" id=\"key-takeaways\" title=\"Key Takeaways\"><\/span><h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n<ul class=\"wp-block-list\"><li>North Korean hacking group TraderTraitor executed an initial $3.79 billion sweep on the Ethereum network.<\/li><li>The attacker deposited $60 million in USDT on Aave to borrow 19,760 WETH before stablecoin issuers could freeze the assets.<\/li><li>An additional $325 million in USDT was swapped through UniswapX and 1inch, costing the hacker a 10 percent fast-track premium.<\/li><li>Tether and Circle initiated asset freezes at 21:18 UTC, but the attacker had already secured 420,000 unfreezable ETH.<\/li><\/ul>\n\n<span class=\"anchor\" id=\"attacker-sweeps-billions-from-binance-hot-wallets\" title=\"Attacker Sweeps Billions From Binance Hot Wallets\"><\/span><h2 class=\"wp-block-heading\">Attacker Sweeps Billions From Binance Hot Wallets<\/h2>\n\n<p class=\"wp-block-paragraph\">The individual or group behind the recent Binance exploit has been confirmed as North Korea\u2019s TraderTraitor. This attacker executed an initial <strong>$3.79 billion sweep<\/strong> on the Ethereum network on Thursday, October 29. The stolen funds consisted of 200,630 native Ethereum tokens alongside massive amounts of stablecoins. Analysts noted that over $325 million was cleared from Binance\u2019s hot wallets without any human review triggering a pause.<\/p>\n\n<p class=\"wp-block-paragraph\">Centralized exchanges typically employ withdrawal caps and manual reviews to prevent such large-scale capital flight. Decentralized and non-custodial platforms operate on smart contracts designed to function without human intervention. The attacker leveraged this exact structural difference to secure the stolen assets before centralized entities could intervene.<\/p>\n\n<span class=\"anchor\" id=\"hacker-pays-premium-to-bypass-imminent-stablecoin-freezes\" title=\"Hacker Pays Premium To Bypass Imminent Stablecoin Freezes\"><\/span><h2 class=\"wp-block-heading\">Hacker Pays Premium To Bypass Imminent Stablecoin Freezes<\/h2>\n\n<p class=\"wp-block-paragraph\">Stablecoin issuers maintain the technical ability to freeze tokens associated with illicit activity. Knowing that Tether and Circle would quickly blacklist the stolen USDT and USDC, the hacker initiated a rapid laundering sequence. TraderTraitor swapped <strong>$325 million USDT<\/strong> using UniswapX and 1inch between 21:09 UTC and 21:34 UTC.<\/p>\n\n<p class=\"wp-block-paragraph\">This process took approximately 35 minutes to complete. The attacker was forced to pay a 10 percent premium on the swapped amount to fast-track the network orders. Tether and Circle successfully began freezing the stablecoins at exactly <strong>21:18 UTC<\/strong>, halting any further conversions. The hacker still managed to move the bulk of the funds before this centralized block took effect.<\/p>\n\n<span class=\"anchor\" id=\"aave-serves-as-conduit-for-rapid-asset-conversion\" title=\"Aave Serves As Conduit For Rapid Asset Conversion\"><\/span><h2 class=\"wp-block-heading\">Aave Serves As Conduit For Rapid Asset Conversion<\/h2>\n\n<p class=\"wp-block-paragraph\">The attacker utilized the decentralized lending protocol Aave as another primary avenue to outsmart the stablecoin freezes. TraderTraitor deposited $60 million in USDT as collateral on the platform. The hacker then borrowed 19,760 Wrapped Ethereum (WETH), valued at $45.13 million, against that frozen collateral.<\/p>\n\n<p class=\"wp-block-paragraph\">This specific borrowing action required only five minutes, occurring between 20:58 UTC and 21:01 UTC. The hacker immediately unwrapped the WETH to receive 142,062 native ETH, which cannot be frozen by any centralized issuer. The combination of the original 200,630 ETH, the unwrapped 142,062 ETH, and other swapped assets left the attacker holding a total of 420,000 unfreezable ETH.<\/p>\n\n<span class=\"anchor\" id=\"aave-founder-denies-claims-of-protocol-bad-debt\" title=\"Aave Founder Denies Claims Of Protocol Bad Debt\"><\/span><h2 class=\"wp-block-heading\">Aave Founder Denies Claims Of Protocol Bad Debt<\/h2>\n\n<p class=\"wp-block-paragraph\">Market observers quickly drew comparisons between this incident and the previous KelpDAO hack. That prior exploit leveraged a similar decentralized finance lending loophole to launder stolen funds, leaving Aave with over $120 million in bad debt. Aave founder Stani Kulechov rejected claims that the Binance incident created a similar liability for the protocol.<\/p>\n\n<p class=\"wp-block-paragraph\">Kulechov stated that the protocol holds no bad debt from this event because the loan remains over-collateralized with stablecoin collateral. The situation does leave Aave holding frozen USDT collateral while the hacker retains the highly liquid, borrowed ETH. It currently remains an open question whether Binance, as the primary victim, or Aave will ultimately recover the frozen $60 million.<\/p>\n\n<span class=\"anchor\" id=\"blockchain-analysts-issue-urgent-upgrade-warnings\" title=\"Blockchain Analysts Issue Urgent Upgrade Warnings\"><\/span><h2 class=\"wp-block-heading\">Blockchain Analysts Issue Urgent Upgrade Warnings<\/h2>\n\n<p class=\"wp-block-paragraph\">The scale and speed of this exploit highlight the vulnerabilities within automated infrastructure. Chainalysis has publicly advised all platforms running Ethereum wallets affected by the specific bug used in this attack to upgrade their systems immediately. The security firm urges maximum vigilance for any protocol utilizing similar non-custodial wallet setups.<\/p>\n\n<p class=\"wp-block-paragraph\">The attacker successfully pre-empted the industry\u2019s standard countermeasures by using decentralized liquidity pools. The speed of smart contracts ultimately outpaced the manual intervention required by centralized stablecoin issuers.<\/p>\n\n<span class=\"anchor\" id=\"our-assessment\" title=\"Our Assessment\"><\/span><h2 class=\"wp-block-heading\">Our Assessment<\/h2>\n\n<p class=\"wp-block-paragraph\">This incident demonstrates a critical structural gap between decentralized finance protocols and centralized stablecoin controls. The attacker successfully used Aave and UniswapX to convert hundreds of millions of dollars in freeze-vulnerable tokens into native, unfreezable assets. The five-minute execution time on Aave and the willingness to pay a 10 percent premium on decentralized exchanges allowed the hacker to outpace the centralized blacklisting process. The event leaves Aave with frozen collateral and raises ongoing questions regarding automated hot wallet security and liability resolution between primary and secondary victims.<\/p>\n\n<div class=\"gambling-disclaimer\">\n\t<p>\n\t\tWe have imposed strict editorial guidelines on ourselves and explain our testing methods openly and comprehensively. We also communicate transparently how our work is financed. This site may contain tracking links, but this does not influence our objective view in any way.\t<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>North Korea&#8217;s TraderTraitor hacker group bypassed centralized stablecoin freezes by laundering stolen Binance funds through decentralized protocols like Aave and UniswapX. The attacker secured 420,000 unfreezable ETH before Tether and Circle could successfully lock the assets.<\/p>\n","protected":false},"author":8,"featured_media":132639,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[],"tags":[],"news_crypto_coin":[],"class_list":["post-132640","post","type-post","status-publish","format-standard","has-post-thumbnail"],"acf":{"faqs":null,"sort_number":999,"sort_number_no_override":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.2 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Binance Hacker Uses Aave and UniswapX to Bypass Asset Freezes<\/title>\n<meta name=\"description\" content=\"North Korea&#039;s TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kryptocasinos.com EN\" \/>\n<meta property=\"og:description\" content=\"North Korea&#039;s TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/\" \/>\n<meta property=\"og:site_name\" content=\"Kryptocasinos.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/kryptocasinoscomm\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-30T16:07:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1408\" \/>\n\t<meta property=\"og:image:height\" content=\"736\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Isabella Brown\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Isabella Brown\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/\"},\"author\":{\"name\":\"Isabella Brown\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#\\\/schema\\\/person\\\/badee6a5ed8b6777da5bd380d112bcdc\"},\"headline\":\"Binance Hacker Bypasses Stablecoin Freezes Using DeFi Protocols\",\"datePublished\":\"2026-10-30T17:07:59+01:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/\"},\"wordCount\":713,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#respond\"]}],\"description\":\"\",\"isAccessibleForFree\":true,\"articleBody\":\"Binance Hacker Secures Stolen Funds Through DeFi Protocols - How TraderTraitor Bypassed Stablecoin Freezes Using Aave and UniswapX\\n\\nKey Takeaways\\n\\nNorth Korean hacking group TraderTraitor executed an initial $3.79 billion sweep on the Ethereum network.The attacker deposited $60 million in USDT on Aave to borrow 19,760 WETH before stablecoin issuers could freeze the assets.An additional $325 million in USDT was swapped through UniswapX and 1inch, costing the hacker a 10 percent fast-track premium.Tether and Circle initiated asset freezes at 21:18 UTC, but the attacker had already secured 420,000 unfreezable ETH.\\n\\nAttacker Sweeps Billions From Binance Hot Wallets\\n\\nThe individual or group behind the recent Binance exploit has been confirmed as North Korea's TraderTraitor. This attacker executed an initial $3.79 billion sweep on the Ethereum network on Thursday, October 29. The stolen funds consisted of 200,630 native Ethereum tokens alongside massive amounts of stablecoins. Analysts noted that over $325 million was cleared from Binance's hot wallets without any human review triggering a pause.\\n\\nCentralized exchanges typically employ withdrawal caps and manual reviews to prevent such large-scale capital flight. Decentralized and non-custodial platforms operate on smart contracts designed to function without human intervention. The attacker leveraged this exact structural difference to secure the stolen assets before centralized entities could intervene.\\n\\nHacker Pays Premium To Bypass Imminent Stablecoin Freezes\\n\\nStablecoin issuers maintain the technical ability to freeze tokens associated with illicit activity. Knowing that Tether and Circle would quickly blacklist the stolen USDT and USDC, the hacker initiated a rapid laundering sequence. TraderTraitor swapped $325 million USDT using UniswapX and 1inch between 21:09 UTC and 21:34 UTC.\\n\\nThis process took approximately 35 minutes to complete. The attacker was forced to pay a 10 percent premium on the swapped amount to fast-track the network orders. Tether and Circle successfully began freezing the stablecoins at exactly 21:18 UTC, halting any further conversions. The hacker still managed to move the bulk of the funds before this centralized block took effect.\\n\\nAave Serves As Conduit For Rapid Asset Conversion\\n\\nThe attacker utilized the decentralized lending protocol Aave as another primary avenue to outsmart the stablecoin freezes. TraderTraitor deposited $60 million in USDT as collateral on the platform. The hacker then borrowed 19,760 Wrapped Ethereum (WETH), valued at $45.13 million, against that frozen collateral.\\n\\nThis specific borrowing action required only five minutes, occurring between 20:58 UTC and 21:01 UTC. The hacker immediately unwrapped the WETH to receive 142,062 native ETH, which cannot be frozen by any centralized issuer. The combination of the original 200,630 ETH, the unwrapped 142,062 ETH, and other swapped assets left the attacker holding a total of 420,000 unfreezable ETH.\\n\\nAave Founder Denies Claims Of Protocol Bad Debt\\n\\nMarket observers quickly drew comparisons between this incident and the previous KelpDAO hack. That prior exploit leveraged a similar decentralized finance lending loophole to launder stolen funds, leaving Aave with over $120 million in bad debt. Aave founder Stani Kulechov rejected claims that the Binance incident created a similar liability for the protocol.\\n\\nKulechov stated that the protocol holds no bad debt from this event because the loan remains over-collateralized with stablecoin collateral. The situation does leave Aave holding frozen USDT collateral while the hacker retains the highly liquid, borrowed ETH. It currently remains an open question whether Binance, as the primary victim, or Aave will ultimately recover the frozen $60 million.\\n\\nBlockchain Analysts Issue Urgent Upgrade Warnings\\n\\nThe scale and speed of this exploit highlight the vulnerabilities within automated infrastructure. Chainalysis has publicly advised all platforms running Ethereum wallets affected by the specific bug used in this attack to upgrade their systems immediately. The security firm urges maximum vigilance for any protocol utilizing similar non-custodial wallet setups.\\n\\nThe attacker successfully pre-empted the industry's standard countermeasures by using decentralized liquidity pools. The speed of smart contracts ultimately outpaced the manual intervention required by centralized stablecoin issuers.\\n\\nOur Assessment\\n\\nThis incident demonstrates a critical structural gap between decentralized finance protocols and centralized stablecoin controls. The attacker successfully used Aave and UniswapX to convert hundreds of millions of dollars in freeze-vulnerable tokens into native, unfreezable assets. The five-minute execution time on Aave and the willingness to pay a 10 percent premium on decentralized exchanges allowed the hacker to outpace the centralized blacklisting process. The event leaves Aave with frozen collateral and raises ongoing questions regarding automated hot wallet security and liability resolution between primary and secondary victims.\\n\\n\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/\",\"name\":\"Binance Hacker Uses Aave and UniswapX to Bypass Asset Freezes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg\",\"datePublished\":\"2026-10-30T17:07:59+01:00\",\"description\":\"North Korea's TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg\",\"contentUrl\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg\",\"width\":1408,\"height\":736,\"caption\":\"A cracked shield and a computer server tower surrounded by scattered blank gold coins.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/news\\\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Binance Hacker Bypasses Stablecoin Freezes Using DeFi Protocols\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/\",\"name\":\"Kryptocasinos.com\",\"description\":\"\",\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#organization\",\"name\":\"Kryptocasinos.com\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/kryptocasinos-com-logo.svg\",\"contentUrl\":\"https:\\\/\\\/www.kryptocasinos.com\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/kryptocasinos-com-logo.svg\",\"width\":109,\"height\":34,\"caption\":\"Kryptocasinos.com\"},\"image\":{\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/kryptocasinoscomm\\\/\"],\"description\":\"Explore the best crypto casinos for %%currentyear%%. Compare top Bitcoin gambling sites by payouts, bonuses, KYC, and supported coins, with hands-on testing.\",\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"557 Fuk Wing St\",\"addressLocality\":\"Cheung Sha Wan\",\"addressRegion\":\"HK\",\"postalCode\":\"999077\",\"addressCountry\":\"CN\"},\"contactPoint\":{\"@type\":\"ContactPoint\",\"email\":\"contact@kryptocasinos.com\"},\"foundingDate\":\"2021-03-27\",\"email\":\"hello@kryptocasinos.com\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"11\",\"maxValue\":\"50\"},\"publishingPrinciples\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/editorial-guidelines\\\/\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/#\\\/schema\\\/person\\\/badee6a5ed8b6777da5bd380d112bcdc\",\"name\":\"Isabella Brown\",\"description\":\"Isabella Brown is a Senior Editor and Crypto Gambling Analyst at KryptoCasinos.com. She has worked in iGaming since 2017, including three years analyzing industry news and trends at iGaming Business (iGB). She covers crypto gambling regulation, casino security, and market developments for US readers, and checks site content for accuracy before publication.\",\"birthDate\":\"1995-02-13\",\"url\":\"https:\\\/\\\/www.kryptocasinos.com\\\/en\\\/author\\\/isabella\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Binance Hacker Uses Aave and UniswapX to Bypass Asset Freezes","description":"North Korea's TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/","og_type":"article","og_title":"Kryptocasinos.com EN","og_description":"North Korea's TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.","og_url":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/","og_site_name":"Kryptocasinos.com","article_publisher":"https:\/\/www.facebook.com\/kryptocasinoscomm\/","article_published_time":"2026-10-30T16:07:59+00:00","og_image":[{"width":1408,"height":736,"url":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg","type":"image\/jpeg"}],"author":"Isabella Brown","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Isabella Brown","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#article","isPartOf":{"@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/"},"author":{"name":"Isabella Brown","@id":"https:\/\/www.kryptocasinos.com\/en\/#\/schema\/person\/badee6a5ed8b6777da5bd380d112bcdc"},"headline":"Binance Hacker Bypasses Stablecoin Freezes Using DeFi Protocols","datePublished":"2026-10-30T17:07:59+01:00","mainEntityOfPage":{"@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/"},"wordCount":713,"commentCount":0,"publisher":{"@id":"https:\/\/www.kryptocasinos.com\/en\/#organization"},"image":{"@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#primaryimage"},"thumbnailUrl":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg","inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#respond"]}],"description":"","isAccessibleForFree":true,"articleBody":"Binance Hacker Secures Stolen Funds Through DeFi Protocols - How TraderTraitor Bypassed Stablecoin Freezes Using Aave and UniswapX\n\nKey Takeaways\n\nNorth Korean hacking group TraderTraitor executed an initial $3.79 billion sweep on the Ethereum network.The attacker deposited $60 million in USDT on Aave to borrow 19,760 WETH before stablecoin issuers could freeze the assets.An additional $325 million in USDT was swapped through UniswapX and 1inch, costing the hacker a 10 percent fast-track premium.Tether and Circle initiated asset freezes at 21:18 UTC, but the attacker had already secured 420,000 unfreezable ETH.\n\nAttacker Sweeps Billions From Binance Hot Wallets\n\nThe individual or group behind the recent Binance exploit has been confirmed as North Korea's TraderTraitor. This attacker executed an initial $3.79 billion sweep on the Ethereum network on Thursday, October 29. The stolen funds consisted of 200,630 native Ethereum tokens alongside massive amounts of stablecoins. Analysts noted that over $325 million was cleared from Binance's hot wallets without any human review triggering a pause.\n\nCentralized exchanges typically employ withdrawal caps and manual reviews to prevent such large-scale capital flight. Decentralized and non-custodial platforms operate on smart contracts designed to function without human intervention. The attacker leveraged this exact structural difference to secure the stolen assets before centralized entities could intervene.\n\nHacker Pays Premium To Bypass Imminent Stablecoin Freezes\n\nStablecoin issuers maintain the technical ability to freeze tokens associated with illicit activity. Knowing that Tether and Circle would quickly blacklist the stolen USDT and USDC, the hacker initiated a rapid laundering sequence. TraderTraitor swapped $325 million USDT using UniswapX and 1inch between 21:09 UTC and 21:34 UTC.\n\nThis process took approximately 35 minutes to complete. The attacker was forced to pay a 10 percent premium on the swapped amount to fast-track the network orders. Tether and Circle successfully began freezing the stablecoins at exactly 21:18 UTC, halting any further conversions. The hacker still managed to move the bulk of the funds before this centralized block took effect.\n\nAave Serves As Conduit For Rapid Asset Conversion\n\nThe attacker utilized the decentralized lending protocol Aave as another primary avenue to outsmart the stablecoin freezes. TraderTraitor deposited $60 million in USDT as collateral on the platform. The hacker then borrowed 19,760 Wrapped Ethereum (WETH), valued at $45.13 million, against that frozen collateral.\n\nThis specific borrowing action required only five minutes, occurring between 20:58 UTC and 21:01 UTC. The hacker immediately unwrapped the WETH to receive 142,062 native ETH, which cannot be frozen by any centralized issuer. The combination of the original 200,630 ETH, the unwrapped 142,062 ETH, and other swapped assets left the attacker holding a total of 420,000 unfreezable ETH.\n\nAave Founder Denies Claims Of Protocol Bad Debt\n\nMarket observers quickly drew comparisons between this incident and the previous KelpDAO hack. That prior exploit leveraged a similar decentralized finance lending loophole to launder stolen funds, leaving Aave with over $120 million in bad debt. Aave founder Stani Kulechov rejected claims that the Binance incident created a similar liability for the protocol.\n\nKulechov stated that the protocol holds no bad debt from this event because the loan remains over-collateralized with stablecoin collateral. The situation does leave Aave holding frozen USDT collateral while the hacker retains the highly liquid, borrowed ETH. It currently remains an open question whether Binance, as the primary victim, or Aave will ultimately recover the frozen $60 million.\n\nBlockchain Analysts Issue Urgent Upgrade Warnings\n\nThe scale and speed of this exploit highlight the vulnerabilities within automated infrastructure. Chainalysis has publicly advised all platforms running Ethereum wallets affected by the specific bug used in this attack to upgrade their systems immediately. The security firm urges maximum vigilance for any protocol utilizing similar non-custodial wallet setups.\n\nThe attacker successfully pre-empted the industry's standard countermeasures by using decentralized liquidity pools. The speed of smart contracts ultimately outpaced the manual intervention required by centralized stablecoin issuers.\n\nOur Assessment\n\nThis incident demonstrates a critical structural gap between decentralized finance protocols and centralized stablecoin controls. The attacker successfully used Aave and UniswapX to convert hundreds of millions of dollars in freeze-vulnerable tokens into native, unfreezable assets. The five-minute execution time on Aave and the willingness to pay a 10 percent premium on decentralized exchanges allowed the hacker to outpace the centralized blacklisting process. The event leaves Aave with frozen collateral and raises ongoing questions regarding automated hot wallet security and liability resolution between primary and secondary victims.\n\n"},{"@type":"WebPage","@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/","url":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/","name":"Binance Hacker Uses Aave and UniswapX to Bypass Asset Freezes","isPartOf":{"@id":"https:\/\/www.kryptocasinos.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#primaryimage"},"image":{"@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#primaryimage"},"thumbnailUrl":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg","datePublished":"2026-10-30T17:07:59+01:00","description":"North Korea's TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#primaryimage","url":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg","contentUrl":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2026\/10\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx.jpg","width":1408,"height":736,"caption":"A cracked shield and a computer server tower surrounded by scattered blank gold coins."},{"@type":"BreadcrumbList","@id":"https:\/\/www.kryptocasinos.com\/en\/news\/binance-hacker-bypasses-stablecoin-freezes-aave-uniswapx\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.kryptocasinos.com\/en\/"},{"@type":"ListItem","position":2,"name":"Binance Hacker Bypasses Stablecoin Freezes Using DeFi Protocols"}]},{"@type":"WebSite","@id":"https:\/\/www.kryptocasinos.com\/en\/#website","url":"https:\/\/www.kryptocasinos.com\/en\/","name":"Kryptocasinos.com","description":"","inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.kryptocasinos.com\/en\/#organization","name":"Kryptocasinos.com","url":"https:\/\/www.kryptocasinos.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.kryptocasinos.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2025\/06\/kryptocasinos-com-logo.svg","contentUrl":"https:\/\/www.kryptocasinos.com\/wp-content\/uploads\/2025\/06\/kryptocasinos-com-logo.svg","width":109,"height":34,"caption":"Kryptocasinos.com"},"image":{"@id":"https:\/\/www.kryptocasinos.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/kryptocasinoscomm\/"],"description":"Explore the best crypto casinos for %%currentyear%%. Compare top Bitcoin gambling sites by payouts, bonuses, KYC, and supported coins, with hands-on testing.","address":{"@type":"PostalAddress","streetAddress":"557 Fuk Wing St","addressLocality":"Cheung Sha Wan","addressRegion":"HK","postalCode":"999077","addressCountry":"CN"},"contactPoint":{"@type":"ContactPoint","email":"contact@kryptocasinos.com"},"foundingDate":"2021-03-27","email":"hello@kryptocasinos.com","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"11","maxValue":"50"},"publishingPrinciples":"https:\/\/www.kryptocasinos.com\/en\/editorial-guidelines\/"},{"@type":"Person","@id":"https:\/\/www.kryptocasinos.com\/en\/#\/schema\/person\/badee6a5ed8b6777da5bd380d112bcdc","name":"Isabella Brown","description":"Isabella Brown is a Senior Editor and Crypto Gambling Analyst at KryptoCasinos.com. She has worked in iGaming since 2017, including three years analyzing industry news and trends at iGaming Business (iGB). She covers crypto gambling regulation, casino security, and market developments for US readers, and checks site content for accuracy before publication.","birthDate":"1995-02-13","url":"https:\/\/www.kryptocasinos.com\/en\/author\/isabella\/"}]}},"yoast_meta":{"_yoast_wpseo_primary_category":"","_yoast_wpseo_title":"Binance Hacker Uses Aave and UniswapX to Bypass Asset Freezes","_yoast_wpseo_metadesc":"North Korea's TraderTraitor bypassed Tether and Circle asset freezes by swapping stolen Binance funds through Aave and UniswapX to secure 420,000 ETH."},"_links":{"self":[{"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/posts\/132640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/comments?post=132640"}],"version-history":[{"count":0,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/posts\/132640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/media\/132639"}],"wp:attachment":[{"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/media?parent=132640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/categories?post=132640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/tags?post=132640"},{"taxonomy":"news_crypto_coin","embeddable":true,"href":"https:\/\/www.kryptocasinos.com\/en\/wp-json\/wp\/v2\/news_crypto_coin?post=132640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}