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

A devastating attack on Kelp DAO's cross-chain bridge has resulted in the theft of 116,500 rsETH, valued at around $292 million, accounting for roughly 18% of the token's circulating supply. The breach occurred on Saturday at 17:35 UTC, leveraging LayerZero's cross-chain messaging layer to deceive the bridge into releasing the funds to an attacker-controlled address. The fallout is being felt across multiple DeFi platforms, with Aave, SparkLend, and Fluid freezing their rsETH markets in response. The incident has sparked concerns about the potential for panic redemptions and the impact on the Ethereum supply, as well as the solvency of various DeFi protocols. As the situation unfolds, Kelp DAO is working with LayerZero, Unichain, and security specialists to investigate the exploit and potentially recover the stolen funds.