Crypto's Biggest Heist of 2026: $292 Million Stolen from Kelp DAO, Leaving Wrapped Ether Stranded Across 20 Chains

A devastating hack has struck the Kelp DAO, a liquid restaking protocol, resulting in the theft of 116,500 rsETH, equivalent to roughly 18% of the token's circulating supply, valued at approximately $292 million. The attacker exploited a vulnerability in LayerZero's cross-chain messaging layer, tricking the system into releasing the funds to an attacker-controlled address. The breach has triggered a wave of panic across the DeFi ecosystem, with several platforms, including Aave, SparkLend, and Fluid, freezing their rsETH markets in response. The incident has also raised concerns about the potential for a broader contagion, as the stolen rsETH was backed by wrapped versions of the token deployed on over 20 different blockchains. As the situation continues to unfold, the DeFi community is bracing for potential further fallout, with the value of AAVE already plummeting by around 10% in the aftermath of the exploit.