Onchain Analysts Flag Justin Sun-Linked Wallet’s 274 Million USDT Exit From Aave Minutes After rsETH Freeze

Key Takeaways:

• A wallet linked to Justin Sun pulled 274 cardinal USDT from Aave 21 minutes aft the rsETH marketplace was frozen.
• The withdrawal coincided with KelpDAO’s 292 cardinal exploit connected April 18, which forced Aave to halt rsETH markets.
• Sun has not responded; onchain analysts accidental the 21-minute model raises questions astir decentralized finance ( DeFi) presumption monitoring.

A Swift Exit From Aave Puts Justin Sun Back Under the Microscope

The wallet successful question is the HTX Recovery address, an onchain relationship associated with Sun’s speech HTX. According to Wu Blockchain, Aave’s rsETH and wrsETH markets were frozen astatine 18:52 UTC connected April 18. The 274 cardinal USDT withdrawal was completed betwixt 19:12 and 19:17 UTC, a five-minute execution model analysts accidental suggests pre-positioned transactions oregon automated triggers.

Image source: X

The rsETH marketplace frost was triggered by the KelpDAO exploit, successful which an attacker drained astir 292 cardinal from the protocol via a Layerzero span vulnerability. The attacker utilized stolen rsETH arsenic collateral connected Aave to get ether, prompting the protocol to frost the affected markets arsenic a containment measure.

Wu Blockchain described the HTX Recovery wallet’s exit arsenic “swift,” noting the withdrawal came wrong the 21-minute model betwixt the frost and the transaction timestamp. Whether the determination was a effect to the unfolding exploit, a absorption to the frost notification, oregon regular portfolio hazard absorption has not been established. Sun has not issued a nationalist statement.

In the 24 hours pursuing the exploit, whales pulled much than 5.4 cardinal from Aave, pushing the protocol’s ETH utilization complaint to 100% and efficaciously trapping remaining depositors’ funds, according to information flagged by Wu Blockchain and Lookonchain.

Sun has antecedently moved ample DeFi positions during periods of marketplace stress. In March 2023, wallets attributed to him shifted important USDC and DAI holdings disconnected Aave during the Silicon Valley Bank depegging episode, drafting aggravated scrutiny from the community.

The 274 cardinal USDT withdrawal stands arsenic 1 of the largest azygous exits from Aave recorded during the April 18 incidental window. Aave’s hazard work supplier Llamarisk has since published a ceremonial incidental study detailing imaginable atrocious indebtedness scenarios for rsETH depositors.