Threshold Network has resumed on-chain operations for its tBTC bridge after shutting down the system for nine days since Oct. 30, 2026. The move aims to restore the Bitcoin bridge into the decentralized finance sector. However, the recovery is not yet complete: approximately $120 million in tBTC deposits on the Aave lending market remain frozen.
The temporary shutdown was previously initiated by operators to patch a critical flaw in the Linux kernel. The vulnerability in the server operating system risked being exploited by external parties to inject and execute malicious code on unpatched machines. During the nine-day operational pause, Threshold inspected its entire infrastructure and confirmed no evidence of exploitation on its network nodes.
Pending Queue Clears, New Features Await Quorum
The bridge recovery does not immediately open all access at once. Transfer requests held prior to the system shutdown are now being processed gradually as independent node operators rejoin the network. Operators are prioritizing the completion of pending transactions before activating new deposit functions.
The bridge application interface is currently not accepting new deposits. Token minting and redemption back into the underlying asset also remain suspended until the number of active nodes reaches the protocol’s required quorum threshold. This restriction was implemented to ensure validator consensus is fully prepared before processing new capital flows.
Reserve balance within the system is confirmed to remain safe. Threshold’s custody wallet holds approximately 4,320 BTC, covering the circulating supply of around 4,185 tBTC in the market. The network confirmed that no unauthorized Bitcoin transfers or illicit token minting took place during the shutdown period.
Operating Rules During the Aave Freeze
A different situation persists in the Aave lending market on the Ethereum Core network. Approximately $120 million in tBTC reserve funds remain frozen as of Oct. 31, 2026. This market lock was put in place to protect the protocol from risk exposure while withdrawal processes on the primary bridge were halted.
The freeze policy on Aave restricts activity for new users. The protocol halted fresh tBTC deposits and prohibited the token from being used as collateral to open new loans. Nevertheless, users who already held positions prior to the freeze date are still permitted to withdraw their deposited funds and repay active debt.
Conditions for Reopening Reserves
Aave’s risk management provider, LlamaRisk, stated it will submit a governance proposal to reopen tBTC reserves once Threshold operations are fully restored. Reopening the market on Aave will only be brought to governance once all systems on the bridge resume normal operations.
For tBTC holders and Aave borrowers, full transaction flexibility will only be restored after two steps are completed: Threshold node operators satisfy the network quorum, and the Aave community approves the governance proposal from LlamaRisk.
Reported by Cointelegraph.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
