Kelp DAO Moves to Restore rsETH Following Major Exploit
- Kelp DAO burned the hacker’s stolen rsETH tokens on the Arbitrum network, totaling 117,132 tokens valued at approximately $278 million.
- The recovery process will refill the DeFi token over two weeks from a multisignature wallet controlled by Aave Recovery Guardian and Kelp’s recovery safe.
- Kelp’s total market capitalization for rsETH is currently $1.5 billion, ensuring it remains fully backed at all times.
- Withdrawals are expected to resume within the next 24 hours after initial funds are returned to the smart contract.
- The protocol has enhanced security measures, requiring four independent attestors and implementing Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
This recovery effort follows a significant exploit attributed to North Korea’s Lazarus Group that drained about $293 million from Kelp in April. The incident highlighted operational risks in the DeFi sector that have been often underestimated.
With withdrawals set to resume soon, Kelp aims to restore user confidence after a major breach affected its operations and led to a decline in total value locked from over $2 billion to $1.55 billion.(Source)
