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Aave liquidates attacker’s rsETH positions to recover funds post-April exploit

Protocol Fundamentals
06 May 2026
AMBCrypto
View Source
Bullish
pluang ai news

Aave has liquidated the attacker’s rsETH positions on Ethereum and Arbitrum, securing the collateral under a designated Recovery Guardian as part of its recovery plan following the April exploit. This action converts compromised collateral into recoverable assets, reducing the protocol’s exposure to bad debt. The liquidation process did not affect other users or Aave’s core safety system. While this marks progress, the broader recovery effort continues amid legal complexities related to frozen funds.

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