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

A devastating crypto exploit has occurred, with a hacker making off with approximately $292 million worth of rsETH from Kelp DAO's LayerZero-powered bridge. The attack, which took place on Saturday, has sent shockwaves through the DeFi community, with multiple platforms, including Aave, SparkLend, and Fluid, taking swift action to freeze markets and contain the damage. The stolen funds, representing around 18% of the circulating supply of rsETH, were held in a cross-chain bridge that supported wrapped versions of the token on over 20 different blockchains. The attacker managed to trick LayerZero's cross-chain messaging layer into releasing the funds to a controlled address, highlighting a critical vulnerability in the system. In response, Kelp DAO activated its emergency pause mechanism, freezing core contracts to prevent further losses. However, the incident has already triggered a chain reaction, with holders of rsETH on non-Ethereum deployments facing uncertainty over the validity of their tokens. This has created a ripple effect, with panic redemptions on layer 2 blockchains putting pressure on the unaffected Ethereum supply. The fallout is still unfolding, with Aave, Lido Finance, and Ethena taking precautionary measures to mitigate potential losses. As the investigation into the exploit continues, the DeFi community is left to grapple with the implications of this significant breach, which has already been deemed the largest of 2026.