Kelp DAO Attacker Moves Millions of Dollars in Ether After Exploit

The Kelp DAO attacker has begun moving tens of thousands of Ether after exploiting the protocol, with over $175 million transferred to newly created blockchain addresses. This development comes as other DeFi protocols like Aave have also been affected by the attack.

Around $290 million was drained from Kelp DAO's LayerZero-powered rsETH bridge on Saturday, and the attacker has now started laundering the funds through non-custodial protocols like THORChain and Umbra. This is a concerning trend, as these types of transactions can complicate tracing and recovery.

Arbitrum has taken emergency action to freeze 30,766 ETH tied to the exploit and move the funds into an intermediary frozen wallet. Meanwhile, Aave's total value locked has dropped by around $10 billion since the attack, highlighting the potential for contagion in DeFi.