North Korean Hackers Linked to Massive DeFi Breach Wiping Billions

A major DeFi breach has shaken the cryptocurrency community, with over $13 billion in value wiped from platforms in just two days.

The attack targeted KelpDAO's cross-chain bridge, which uses LayerZero's infrastructure. The hackers exploited a vulnerability in LayerZero's verifier system, allowing them to drain approximately $290 million worth of rsETH on April 18.

LayerZero has attributed the attack with 'preliminary confidence' to North Korea's Lazarus Group, specifically its TraderTraitor subunit. This is not the first major DeFi breach linked to Lazarus this month, as the group was also implicated in a $285 million attack on Drift Protocol just days earlier.

The fallout from the KelpDAO hack has seen users scramble to withdraw their funds from Aave, with over $10 billion in outflows reported. This has led to a significant drop in total value locked across DeFi platforms, highlighting the need for improved security measures.