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

A significant breach has occurred in the cryptocurrency space, with a cross-chain bridge being drained of nearly a fifth of its total token supply. On Saturday, an attacker successfully exploited Kelp DAO's LayerZero-powered bridge, making off with 116,500 rsETH tokens, valued at around $292 million. This substantial loss accounts for roughly 18% of the total circulating supply of rsETH, as tracked by CoinGecko. The breach has triggered a series of emergency responses across various DeFi platforms, including Aave, SparkLend, and Fluid, which have frozen their rsETH markets in response to the incident. The attacker managed to trick LayerZero's cross-chain messaging layer into releasing the tokens to an attacker-controlled address, exploiting a vulnerability in the system. The aftermath of the breach is still unfolding, with the potential for further contagion and instability in the DeFi market. Kelp DAO has acknowledged the incident and is working with LayerZero, Unichain, and external security specialists to investigate the breach and recover the stolen funds.