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

A recent security breach has left the DeFi community reeling, as a staggering $292 million was drained from Kelp DAO's LayerZero-powered bridge, with the attacker exploiting a vulnerability to trick the system into releasing 116,500 rsETH, roughly 18% of the token's circulating supply, to an attacker-controlled address. The heist, which occurred on Saturday at 17:35 UTC, has sent shockwaves throughout the DeFi ecosystem, prompting Aave, SparkLend, and Fluid to freeze their rsETH markets in a bid to mitigate potential losses. The fallout is being felt across more than 20 blockchains, where wrapped versions of the token are deployed, raising concerns about the token's peg and the potential for a broader market contagion. As the situation continues to unfold, Kelp DAO is working with LayerZero, Unichain, and outside security specialists to investigate the incident and recover the stolen funds, while the DeFi community remains on high alert, still reeling from a string of recent high-profile exploits, including the $285 million heist of Solana-based perpetuals protocol Drift on April 1.