Threshold reports 4,320 BTC in reserves against 4,185 tBTC in circulation, but DeFi lenders are restricting exposure until bridge operations resume.

Aave has restricted new deposits and borrowing against $136 million in tokenized Bitcoin after Threshold Network suspended tBTC minting and redemptions.

The Oct. 31 intervention followed Threshold's decision to halt operations on its Bitcoin bridge while conducting undisclosed security maintenance, prompting decentralized lending protocols to limit their exposure to the asset.

In an Oct. 31 security update, Threshold said the token remained fully backed, with approximately 4,320 BTC held in bridge wallets against 4,185 tBTC in circulation.

“tBTC remains fully backed, and no funds have been lost,” the project stated, adding that investigators had found no unauthorized token minting.

The reserves exceed the circulating supply by about 135 BTC, reassuring holders about the assets backing the token even as they temporarily lose access to direct Bitcoin redemptions.

Threshold maintained that the situation was contained and that bridge functionality would return after remediation. However, it has not disclosed the specific security issue that prompted the suspension or provided a reopening date.

Existing tBTC remains transferable across Ethereum and layer-2 networks, although new Bitcoin deposits, token minting and redemption requests are suspended. Pending transactions will be completed when operations resume.

The suspension prompted Aave risk service provider LlamaRisk to recommend an immediate freeze of tBTC on the protocol's Ethereum V3 Core market.

According to an Oct. 31 governance notice , Aave's guardian multisig executed the restriction at 10:01 UTC, preventing users from depositing additional tBTC or using the token to increase borrowing power.

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