# Gauntlet Withdraws $65,000 From tBTC-Backed Morpho Market By Simon Yoon Canonical URL: https://www.tokenpost.com/news/technology/46349 Published: 2026-11-02T11:35:50.000Z Updated: 2026-11-02T11:35:50.000Z Section: Technology > Its Ethereum vault had supplied about $704,000 to the pool before the move, with roughly $640,000 remaining afterward. Gauntlet withdrew about $65,000 in USD Coin (USDC) from a Morpho market backed by Bitcoin (BTC)-linked tBTC on Oct. 31, adding the market to an emergency exclusion list as Threshold Network paused new deposits and redemption requests during security maintenance. Gauntlet’s Ethereum Morpho USDC Core vault had about $704,000 supplied to the market before the withdrawal. Roughly $640,000 remained afterward. Gauntlet warned that the pause could hurt tBTC trading liquidity. If tBTC trades at a discount to BTC, collateral liquidations could become harder for lenders. Threshold paused new BTC deposits, tBTC minting and new redemption requests on Oct. 31. Pending transactions are set to be completed once operations resume, while existing tBTC can still move across Ethereum and layer-2 networks. Threshold has not identified the security issue or given a date for restoring the paused functions. The network also told users not to send BTC to old deposit addresses or repeat pending transactions. The pause affects new deposits, minting and redemption requests; it does not prevent holders from transferring tBTC already in circulation. Aave’s guardian multisig separately froze its tBTC reserve in Aave V3 Ethereum Core at 6:01 a.m. ET (10:01 UTC) Oct. 31, following a recommendation from risk provider LlamaRisk. The restriction blocks new tBTC deposits and borrowing that would use the token to increase borrowing power. Users can still repay loans, withdraw eligible collateral and face liquidations under the existing rules. The [Ethereum Core tBTC reserve freeze]() applied to that reserve only. At the time of the freeze, the reserve held about 1,760 tBTC valued at $136.6 million, equal to roughly 42% of tBTC’s circulating supply. LlamaRisk said it would continue monitoring collateral positions and trading liquidity, and recommend restoring normal operations when conditions allow. ## Links in this article - [Ethereum Core tBTC reserve freeze](https://www.tokenpost.com/news/technology/45448)