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

A devastating hack has struck Kelp DAO, a liquid restaking protocol, with the attacker making off with 116,500 rsETH, valued at around $292 million. This significant breach has sent shockwaves throughout the DeFi ecosystem, affecting multiple platforms and sparking fears of a potential market downturn. The attack, which occurred on Saturday at 17:35 UTC, exploited a vulnerability in LayerZero's cross-chain messaging layer, allowing the hacker to trick the system into releasing the stolen funds. In response, Kelp DAO's emergency pauser multisig froze the protocol's core contracts, but not before the attacker attempted to drain an additional 40,000 rsETH. The incident has far-reaching implications, with many DeFi platforms, including Aave, SparkLend, and Fluid, freezing their rsETH markets to mitigate potential losses. As the situation continues to unfold, the fate of rsETH's peg and the overall stability of the DeFi market hang in the balance.