Kelp DAO rsETH Bridge Hack Drains $292M as DeFi Losses Top $600M in Two Weeks
The post Kelp DAO rsETH Bridge Hack Drains $292M as DeFi Losses Top $600M in Two Weeks appeared on BitcoinEthereumNews.com.
TLDR: An attacker drained 116,500 rsETH worth $292M from Kelp DAO’s LayerZero-powered bridge in one attack. Stolen rsETH was deposited on Aave, Compound, and Euler as collateral to borrow ETH, creating bad debt. Kelp DAO paused rsETH contracts on Ethereum mainnet and multiple L2s while coordinating with security experts. Over $600M was stolen from more than 10 DeFi protocols in two weeks, with AI accelerating hacker capabilities. Kelp DAO suffered a major security breach involving its LayerZero-powered rsETH cross-chain bridge. The attacker drained 116,500 rsETH tokens worth approximately $292 million from the protocol. The stolen assets were then used as collateral on major lending platforms to borrow ETH. Kelp DAO paused rsETH contracts across the Ethereum mainnet and several Layer 2 networks amid the crisis. Security experts from multiple organizations quickly joined the investigation as it got underway. How the Kelp DAO rsETH Bridge Exploit Unfolded The attacker targeted the LayerZero bridge within Kelp DAO’s cross-chain system. Some 116,500 rsETH tokens were drained during the attack. The stolen funds were transferred to lending platforms including Aave, Compound, and Euler. There, the attacker used rsETH as collateral to borrow ETH, creating bad debt across those protocols. Kelp DAO confirmed the breach through its official X account that day. The protocol stated it had identified suspicious cross-chain activity involving rsETH. Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate. We are working with @LayerZero_Core, @unichain, our auditors and top security experts on RCA. We will keep you… — Kelp (@KelpDAO) April 18, 2026 Contracts were paused across mainnet and several Layer 2 networks accordingly. The team coordinated with LayerZero, Unichain, auditors, and security experts on root cause analysis. Aave and several protocols froze or paused rsETH-related markets in response.…
Filed under: News - @ April 19, 2026 1:20 am