$292 Million Drained from Kelp DAO’s Cross-Chain Bridge
- An attacker drained 116,500 rsETH from Kelp DAO’s bridge, valued at approximately $292 million.
- The drained amount represents about 18% of the circulating supply of rsETH, which is 630,000 tokens.
- Kelp DAO’s emergency multisig froze core contracts 46 minutes after the attack.
- Follow-up attempts to drain an additional 40,000 rsETH, worth around $100 million, were reverted.
- Major platforms like Aave, SparkLend, and Fluid have frozen their rsETH markets in response to the exploit.
- This incident marks the largest DeFi exploit of the year, surpassing a previous attack on Drift that resulted in a loss of about $285 million.
The exploit exploited vulnerabilities in LayerZero’s cross-chain messaging layer, allowing unauthorized withdrawals from Kelp DAO’s bridge which supports multiple blockchains including Ethereum-based Layer2 networks.
As a result of this incident, concerns over the stability and backing of rsETH are rising among holders across various chains due to the significant reserve being compromised. The fallout continues as protocols take precautionary measures following this unprecedented breach.(Source)
