Gauntlet · 2026-10-29 22:15 UTC

Binance hot wallets on Ethereum were drained this afternoon. Our risk team has been tracing the funds since the first transfer. The Binance wallet that was drained held no positions in any market our vaults lend into, on Ethereum or BNB Chain. We followed the funds to the attacker’s downstream wallets and checked each one against Morpho activity on Ethereum. We have not identified any borrowing from our vaults but will continue monitoring. USDT, USDC, XAUt and WLFI held at the attacker’s address are frozen ($1.8B). Compound has frozen its markets too. Our vaults now take no stablecoins as collateral, and they have no supply in markets backed by ENA, UNI, LINK, AAVE, PEPE, ONDO, PAXG or wBETH. As a precaution, our Lista vaults on BNB Chain withdrew liquidity from a number of markets. We’ll decide market by market when to resupply. What’s left is price exposure to ETH and WBTC on Ethereum and to BTCB on BNB Chain, which is holding its peg.

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