Kelp DAO Suffers Major Crypto Heist, Losing $292 Million in Restaked Ether

A significant attack on Kelp DAO's cross-chain bridge has led to the loss of nearly a fifth of the circulating supply of restaked ether, with far-reaching implications for the DeFi ecosystem. On Saturday, an attacker successfully drained 116,500 rsETH, valued at around $292 million, from the bridge, which utilizes LayerZero's cross-chain messaging technology. This incident has triggered a series of emergency responses, including the freezing of contracts by Kelp DAO and the suspension of rsETH markets on various platforms. The stolen funds were part of the reserve backing wrapped versions of the token on over 20 different blockchains, raising concerns about the potential for panic redemptions and subsequent market instability. As the investigation into the exploit continues, the DeFi community remains on high alert, with several major players, including Aave and Lido Finance, taking precautionary measures to mitigate potential losses. The attack has also sparked fears of a broader contagion, with the price of AAVE falling by around 10% in response to the news. With the total value of the stolen funds surpassing $290 million, this incident marks one of the most significant crypto exploits of 2026, highlighting the ongoing vulnerabilities in the DeFi space.