Onchain Analysts Flag Justin Sun-Linked Wallet’s 274 Million USDT Exit From Aave Minutes After rsETH Freeze
Key Takeaways: The rsETH market freeze was triggered by the KelpDAO exploit, in which an attacker drained approximately 292 million from the protocol via a Layerzero bridge vulnerability. The attacker used stolen rsETH as collateral on Aave to borrow ether, prompting the protocol to freeze the affected markets as a containment measure. Wu Blockchain described the HTX Recovery wallet’s exit as “swift,” noting the withdrawal came within the 21-minute window between the freeze and the transaction timestamp. Whether the move was a response to the unfolding exploit, a reaction to the freeze notification, or routine portfolio risk management has not been established. Sun has not issued a public statement. In the 24 hours following the exploit, whales pulled more than 5.4 billion from Aave, pushing the protocol’s ETH utilization rate to 100% and effectively trapping remaining depositors’ funds, according to data flagged by Wu Blockchain and Lookonchain. Sun has previously moved large DeFi positions during periods of market stress. In March 2023, wallets attributed to him shifted significant USDC and DAI holdings off Aave during the Silicon Valley Bank depegging episode, drawing intense scrutiny from the community. The 274 million USDT withdrawal stands as one of the largest single exits from Aave recorded during the April 18 incident window. Aave’s risk service provider Llamarisk has since published a formal incident report detailing potential bad debt scenarios for rsETH depositors.About Author
