Crypto's Biggest Heist of 2026: Kelp DAO Loses $292 Million to Hacker

A monumental breach has occurred in the DeFi space, with a hacker making off with a staggering $292 million worth of restaked ether tokens from Kelp DAO's LayerZero-powered bridge. The attack, which took place on Saturday, has sent shockwaves throughout the cryptocurrency community, with many protocols scrambling to mitigate potential losses. The hacker exploited a vulnerability in LayerZero's cross-chain messaging layer, tricking the system into releasing 116,500 rsETH tokens to an attacker-controlled address. The aftermath of the attack has seen a flurry of activity, with Kelp DAO freezing its core contracts, and other platforms such as Aave, SparkLend, and Fluid taking swift action to protect their users. The incident has raised concerns about the security of cross-chain bridges and the potential for further exploits, leaving many to wonder if the stolen funds can be recovered before the trail goes cold.