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

A significant breach occurred on Saturday at 17:35 UTC, when an attacker exploited Kelp DAO's LayerZero-powered bridge, siphoning off nearly 18% of the circulating supply of restaked ether tokens. The stolen funds, worth around $292 million, have left a trail of uncertainty across over 20 blockchain networks. Kelp DAO, a liquid restaking protocol, utilizes EigenLayer to generate additional yield on user-deposited ETH, issuing rsETH as a tradeable receipt. The breach has sparked a series of emergency measures, including the freezing of contracts by Kelp DAO and other affected platforms such as Aave, SparkLend, and Fluid. The attack has also raised concerns about the potential for panic redemptions and the impact on the broader DeFi ecosystem. As the situation unfolds, the fate of rsETH's peg and the potential recovery of stolen funds remain uncertain, with Kelp DAO working closely with LayerZero, Unichain, auditors, and security specialists to investigate the incident.