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

A devastating crypto heist has occurred, with an attacker making off with 116,500 rsETH, valued at approximately $292 million, from Kelp DAO's LayerZero-powered bridge. This represents about 18% of the token's circulating supply. The breach has triggered a series of emergency freezes and measures across various DeFi platforms, including Aave, SparkLend, and Fluid. The attacker exploited LayerZero's cross-chain messaging layer, tricking it into releasing the stolen funds to an attacker-controlled address. The fallout is being felt across over 20 blockchains, where wrapped versions of the token are deployed, leaving holders uncertain about the value of their tokens. The incident has sparked concerns of a potential contagion effect, with AAVE's price dropping by around 10% and other platforms taking precautionary measures. Kelp DAO has acknowledged the incident and is investigating the matter with LayerZero and other security specialists.