Huge Loss for Kelp DAO: $292 Million Stolen in Exploit

Recent News Kelp DAO has been drained of nearly $292 million. An attacker exploited a cross-chain bridge holding about 18% of the circulating supply of rsETH, a restaked ether token. The bridge, powered by LayerZero, was tricked into releasing 116,500 rsETH to an attacker-controlled address. The Kelp DAO team froze the protocol's core contracts 46 minutes after the attack, and two follow-up attempts were reverted. The exploited bridge held the rsETH reserve backing wrapped versions of the token on over 20 other blockchains. North Korea's Crypto Attacks: Less than three weeks after a North Korea-linked hack on Drift, another major exploit has been linked to the nation. The Kelp attack suggests an evolution in North Korea's hacking tactics, exploiting the basic assumptions built into decentralized systems rather than just looking for bugs or stolen credentials. Over $500 million has been stolen in the Drift and Kelp exploits in just over two weeks. Aave's Exposure: The attacker deposited 89,567 rsETH into Aave as collateral and borrowed roughly $190 million in ETH and related assets. Aave has frozen rsETH markets and set loan-to-value ratios to zero to contain the risk. The outcome depends on how Kelp handles the shortfall, with potential bad debt ranging from $124 million to $230 million. Coinbase's Quantum Computing Report: A new report commissioned by Coinbase warns that while current blockchains are secure, a future 'fault-tolerant quantum computer' could break widely used encryption. The report stresses the need for preparation and highlights efforts by major crypto ecosystems to develop quantum-resistant technologies. Other News Regulatory and Policy Updates