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Guavy AI Editorial Team••Sentiment: -3•Clout: 82

$292 Million Heist Rocks DeFi Ecosystem

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A massive DeFi exploit occurred on Saturday, when an attacker drained 116,500 rsETH from Kelp DAO's LayerZero-powered bridge in a mere 46 minutes. The stolen funds were worth around $292 million, representing about 18% of the total circulating supply of rsETH.

The attacker tricked LayerZero's cross-chain messaging layer into believing a valid instruction had arrived from another network. This caused Kelp's bridge to release the funds to an attacker-controlled wallet. The stolen amount was then moved through a Tornado Cash-funded address, with about $250 million converted to ETH.

The fallout of this incident has spread across DeFi, with several protocols freezing their rsETH markets. Aave, SparkLend, and Fluid were among those that paused their rsETH markets, while Lido Finance and Ethena took precautionary measures.