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

A devastating hack has struck Kelp DAO, a liquid restaking protocol, with an attacker making off with a staggering 116,500 rsETH, equivalent to around $292 million and roughly 18% of the token's circulating supply. The breach occurred on Saturday at 17:35 UTC, when the attacker exploited a vulnerability in LayerZero's cross-chain messaging layer, tricking the system into releasing the funds to a controlled address. The fallout is widespread, with the hack affecting over 20 blockchains and prompting emergency measures from major DeFi players, including Aave, SparkLend, and Fluid. As the situation continues to unfold, the DeFi community is left reeling, with many wondering how the exploit was able to bypass the bridge's validation logic and what the long-term consequences will be for the affected protocols and their users.