tBTC Bridge Resumes Onchain as Aave’s $120M Reserve Stays Frozen

By Daniel Okafor

Threshold Network’s tBTC bridge resumed onchain on Nov. 8 after nine days offline, but the app still barred new Bitcoin deposits, tBTC minting and redemption requests, while about $120 million in Aave’s Ethereum Core tBTC reserve remained frozen.

Threshold had paused those functions on Oct. 30 while node operators patched a critical Linux kernel vulnerability. The flaw could let remote attackers run code on unpatched servers, so the shutdown covered the transfer, issuance and redemption paths at once.

Threshold said it had “found no evidence that tBTC nodes were exploited.” It also reported no unauthorized Bitcoin transfers or tBTC minting during the pause. Those findings point to a security-driven shutdown and node recovery, not a confirmed theft or unauthorized issuance.

What did the Nov. 8 resumption restore?

Patched node operators were reconnecting when Threshold announced the onchain return. That restored underlying connectivity, but not a full reopening: the app still did not accept new Bitcoin deposits, tBTC minting or redemption requests.

Threshold expects pending redemption requests to be processed as more patched nodes come online. The company has set no date for a full restart, leaving prospective depositors and minters without access while existing redeemers wait for processing capacity.

How did Aave contain the exposure?

Aave froze its Ethereum Core tBTC reserve on Oct. 31 while redemption routes were disrupted, a move intended to prevent exposure from growing. The action restricts new deposits and borrowing against tBTC.

Users still can withdraw existing funds and repay loans. Those exceptions preserve two ways to reduce or unwind positions during the bridge interruption, while the freeze prevents additional reserve use and new tBTC-backed borrowing.

LlamaRisk, Aave’s risk management provider, plans to “propose restoring the reserve once Threshold’s operations return to normal.” Because LlamaRisk described a proposal rather than an automatic restoration, the reserve remains tied to Threshold’s recovery and a separate risk decision.

What do the custody figures show?

Threshold said bridge wallets held about 4,320 BTC against roughly 4,185 tBTC in circulation. The company continued to report no unauthorized Bitcoin transfers or tBTC minting during the pause.

Those figures describe custody and issuance checks during the shutdown; they do not amount to a declaration that full service has resumed. For Aave, the operational dependency remains a functioning redemption route, not merely onchain node connectivity.

What happens before a full restart?

Threshold still has to complete operator reconnections, process pending redemptions and reopen new deposits, minting and redemption requests. It has not supplied a timetable for those steps, and patched operators were still coming back online as of the Nov. 8 update.

Until that changes, the tBTC bridge can be onchain while remaining closed to new requests. The next firm checkpoint is Threshold’s full-restart announcement; only after operations return to normal can LlamaRisk move to propose restoring Aave’s roughly $120 million reserve.