Major Crypto Heist: $292 Million Stolen from Kelp DAO, Leaving 20 Blockchains Vulnerable

A devastating cryptocurrency heist has shaken the DeFi landscape, as an attacker successfully drained a substantial amount of rsETH from Kelp DAO's LayerZero-powered bridge, sparking a wave of emergency responses across various platforms. The breach, which occurred on Saturday at 17:35 UTC, saw the thief make off with 116,500 rsETH, equivalent to roughly $292 million and accounting for approximately 18% of the token's circulating supply. This significant loss has triggered a chain reaction, with Aave, SparkLend, and Fluid implementing freezes on their rsETH markets, while Lido Finance has paused deposits into its earnETH product. The aftermath of the attack has also led to a decline in AAVE's value, with the token plummeting by around 10% as the market adjusts to the potential bad debt. As the situation continues to unfold, the DeFi community remains on high alert, with many platforms taking precautionary measures to safeguard against potential contagion. The incident serves as a stark reminder of the ever-present risks in the cryptocurrency space, particularly in the wake of recent high-profile exploits, including the $285 million drain of Solana-based perpetuals protocol Drift on April 1