Crypto Market Rocked by $292M Hack Targeting KelpDAO's rsETH

A recent cyberattack has shaken the crypto market, with an estimated $292 million lost due to a sophisticated mint-and-borrow transaction. The attack targeted rsETH, a liquid restaking token on EigenLayer, which was collateralized on Aave V3.

The attacker exploited the protocol's vulnerability by minting between $280 and $300 million worth of rsETH, then using it to borrow large sums of ETH and WETH. The funds were subsequently laundered through Tornado Cash to conceal the trail of transactions.

KelpDAO has released an official statement, confirming that they have paused rsETH contracts while investigating the incident. Aave also issued a statement, assuring that its contracts have not been exploited and that it will explore ways to offset any potential bad debt accumulation.