Major Crypto Heist: $292 Million Stolen from Kelp DAO, Leaving Wrapped Ether Stranded Across 20 Blockchains

A devastating breach occurred on Saturday when an attacker drained nearly 18% of the circulating supply of restaked ether (rsETH) from Kelp DAO's LayerZero-powered bridge, valued at around $292 million. The exploit has sent shockwaves through the DeFi ecosystem, with the attacker manipulating LayerZero's cross-chain messaging layer to trick Kelp's bridge into releasing 116,500 rsETH to a controlled address. In response, Kelp DAO's emergency pauser multisig froze the protocol's core contracts, while other platforms such as Aave, SparkLend, and Fluid have taken measures to mitigate potential losses. The incident has raised concerns about the stability of wrapped ether tokens deployed across over 20 blockchains, with holders facing uncertainty about the value of their tokens. As the situation unfolds, the DeFi community is bracing for potential contagion, with AAVE's price already taking a hit and other platforms like Lido Finance taking precautionary measures.