Massive Crypto Heist: $292 Million Stolen from Kelp DAO, Leaving 20 Blockchains Vulnerable

A devastating attack on Kelp DAO's cross-chain bridge has resulted in the theft of 116,500 rsETH, valued at around $292 million, leaving a trail of uncertainty across over 20 blockchains. The breach, which occurred on Saturday at 17:35 UTC, exploited a vulnerability in LayerZero's cross-chain messaging layer, allowing the attacker to trick the system into releasing the funds to a controlled address. The stolen rsETH was part of a reserve backing wrapped versions of the token on various layer 2 blockchains, sparking concerns about the potential collapse of these wrapped tokens. In response, several DeFi platforms, including Aave, SparkLend, and Fluid, have frozen their rsETH markets, while Lido Finance has paused further deposits into its earnETH product. The incident has sent shockwaves through the DeFi community, with AAVE's price plummeting by around 10% and raising fears of a broader contagion. As the situation continues to unfold, the fate of rsETH's peg and the potential recovery of the stolen funds remain uncertain, leaving many to wonder if this is the most significant DeFi exploit of 2026.