Kelp Liquid Restaking Protocol Suffers $293 Million Cyber Attack
- Kelp paused smart contracts for its restaking token (rsETH) after identifying suspicious cross-chain activity.
- The exploit, targeting the rsETH adapter bridge contract, resulted in a loss of approximately $293 million.
- The attacker converted about $250 million of the stolen funds to Ether (ETH).
- Decentralized finance platform Aave froze rsETH markets on both V3 and V4 due to the incident.
- At least nine other crypto protocols have also frozen activities related to rsETH following the attack.
This incident underscores the vulnerabilities within DeFi ecosystems, as Kelp’s exploit is part of a larger trend of cybersecurity breaches in the crypto space, which saw losses totaling about $482 million in Q1.
Following the attack, Kelp’s pause on rsETH contracts highlights significant risks associated with cross-chain operations and composability in decentralized finance.(Source)
