Massive Crypto Heist: Kelp DAO Loses $292 Million to Hacker, Affects 20 Blockchain Networks

A devastating hack has struck Kelp DAO, a liquid restaking protocol, resulting in the loss of approximately $292 million. The attacker exploited a weakness in the platform's LayerZero-powered bridge, siphoning off 116,500 rsETH, which accounts for roughly 18% of the token's circulating supply. The breach has triggered a wave of emergency measures across various DeFi protocols, including Aave, SparkLend, and Fluid, which have frozen their rsETH markets to mitigate potential damage. The incident has also sparked concerns about the stability of the DeFi ecosystem, with several protocols, including Lido Finance and Ethena, taking precautions to protect their users. As the investigation into the hack continues, the fate of the stolen funds and the potential impact on the DeFi market remain uncertain.