Major Crypto Heist: $292 Million Stolen from Kelp DAO, Leaving 20 Blockchain Networks Exposed

In a devastating blow to the DeFi ecosystem, a malicious actor exploited a vulnerability in Kelp DAO's LayerZero-powered bridge, siphoning off nearly 18% of the circulating supply of restaked ether tokens. The attack, which occurred on Saturday at 17:35 UTC, has sent shockwaves through the industry, with numerous platforms scrambling to mitigate potential losses. The stolen rsETH, valued at approximately $292 million, was held in a reserve backing wrapped versions of the token deployed across over 20 blockchain networks, including Base, Arbitrum, and Scroll. The breach has raised concerns about the solvency of these wrapped tokens, sparking a potential crisis of confidence among holders. As the situation continues to unfold, several prominent DeFi platforms, including Aave, SparkLend, and Fluid, have frozen their rsETH markets, while others, such as Lido Finance, have paused further deposits into affected products. The incident has also prompted Ethena, a stablecoin issuer, to temporarily suspend its LayerZero OFT bridges as a precautionary measure. With the attacker's identity and methods still unknown, the DeFi community is on high alert, bracing for potential further contagion. The Kelp DAO incident marks the largest DeFi exploit of 2026, surpassing the recent $285 million heist targeting Solana-based perpetuals protocol Drift.