Aave freezes $136 million tBTC market after Threshold halts Bitcoin bridge

Aave restricted new deposits and borrowing on its Ethereum Core market after Threshold Network suspended tBTC minting and redemptions. Approximately 1,760 tBTC worth $136.6 million, representing 42% of circulating supply, was frozen from the protocol. The restriction follows Threshold's undisclosed security maintenance on its Bitcoin bridge, which holds approximately 4,320 BTC backing 4,185 tBTC in circulation. Aave's guardian multisig executed the freeze at 10:01 UTC on Oct. 31. Existing users can still repay loans and withdraw collateral, while liquidations remain active.