Kelp DAO exploited for $292 million with wrapped ether stranded across 20 chains

Kelp DAO exploited for $292 million with wrapped ether stranded across 20 chains

An attacker drained 116,500 rsETH, roughly 18% of circulating supply, from Kelp's LayerZero-powered bridge on Saturday, triggering emergency freezes across Aave, SparkLend, Fluid and Upshift.

Hacking Crisis Escalates: Record Outflows from Aave | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker - National Cyber Security Consulting

The KelpDAO-related security breach crisis in the cryptocurrency market has led to a significant liquidity shock in DeFi protocols. According to recent data, large-scale $ETH outflows have occurred via Aave, while investor confidence is visibly weakening. According to information shared by the on-chain analytics platform Lookonchain, the KelpDAO exploit resulted in a “bad debt” on […] Thank you for subscribing to our RSS feed! The post Hacking C…

Aave Faces $5.4 Bilion ETH Outflows After rsETH Exploit Triggers Panic

Aave experienced significant stress on April 19 after reports linked to rsETH triggered rapid Ethereum withdrawals. Users rushed to exit positions, pushing ETH utilization on the protocol to 100% and exhausting available liquidity. The sudden movement followed concerns about a potential exploit affecting collateral integrity within the decentralized lending ecosystem and broader DeFi stability. An exploit involving an attacker using rsETH for co…

Kelp DAO Suffers $292 Million rsETH Exploit – Details

Wu Blockchain reports that Kelp DAO has suffered a massive cross-chain exploit that drained approximately 116,500 rsETH, valued at nearly $292 million. The incident raises fresh concerns about the protocol’s security, coming less than a year after a previous disruption tied to a smart contract bug Related Reading: $20M Crypto Scam Lands Texas Man 23-Year […]

XRP Validator Reports $280 Million Compromise On Ethereum and Arbitrum

A major security incident has drawn attention across decentralized finance systems in early 2026. Blockchain investigator ZachXBT (@zachxbt) reported that a $280 million compromise involving KelpDAO positions is currently unfolding across Ethereum and Arbitrum. On-chain tracking shows rapid movement of funds after initial access. The attacker interacted with multiple DeFi positions, executed transfers, and consolidated assets into fewer wallets.…

KelpDAO Hack Triggers $280M Crypto Drainage And Pushes Aave Into Bad Debt

A shocking hack shaken the entire decentralized finance (DeFi) network this weekend. Particularly, on Saturday, the hack of the renowned KelpDAO has led to a theft of more than $280M across Arbitrum and Ethereum. As per the data from “mufettis,” the KelpDAO hack has resulted in hefty debt on Aave, a popular decentralized lending entity. The attacker borrowed $ETH coins against $rsETH after minting them and laundered the drained funds via Tornado…