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

A devastating breach has struck the DeFi landscape, as a cross-chain bridge holding nearly a fifth of the circulating supply of a restaked ether token was drained, unleashing a wave of panic throughout the ecosystem. On Saturday, at 17:35 UTC, an attacker exploited Kelp DAO's LayerZero-powered bridge, siphoning off 116,500 rsETH, valued at approximately $292 million, which accounts for roughly 18% of the token's total supply. The breach has sent shockwaves through the DeFi community, with the affected bridge holding the rsETH reserve that backs wrapped versions of the token on over 20 blockchains. The attack was made possible by tricking LayerZero's cross-chain messaging layer into validating a fake instruction, resulting in the release of the stolen tokens to an attacker-controlled address. In response, Kelp's emergency pauser multisig froze the protocol's core contracts 46 minutes after the attack, followed by two unsuccessful attempts to drain an additional 40,000 rsETH. The fallout is being felt across multiple platforms, including Aave, SparkLend, and Fluid, which have frozen their rsETH markets, while Lido Finance has paused further deposits into its earnETH product. The incident has sparked concerns about the potential for a broader contagion, as holders of wrapped tokens on non-Ethereum deployments face uncertainty about the value of their assets. As the situation continues to unfold, the DeFi community is left to wonder whether the stolen funds can be recovered and how the incident will impact the overall stability of the ecosystem.