Kelp DAO bridge exploit nets attacker $291M in rsETH, triggers $6.2B Aave withdrawal run

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An attacker exploited Kelp DAO's LayerZero-powered bridge with a phantom message, minting $291M in rsETH on Ethereum without burning the corresponding tokens on Unichain. The stolen collateral was looped through Aave to borrow real assets, pushing WETH pools to 100% utilization, freezing user withdrawals, and triggering $6.2B in net Aave outflows by Sunday morning. Aave froze rsETH markets while Kelp paused contracts across mainnet and several L2s. AAVE dropped 16% to $90.13 and ETH slid 2% to $2,300 on the news.

TLDR by @Benthic

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The KelpDAO rsETH Exploit: $292M Minted From a 1-of-1 Bridge (defiprime.com)
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Inside the KelpDAO Bridge Exploit - Chainalysis (chainalysis.com)
KelpDAO/LayerZero Exploit Drains $290m, Freezes DeFi Markets (galaxy.com)
Kelp DAO's rsETH bridge apparently exploited for roughly $292 ... (x.com)

Kelp DAO bridge exploit nets attacker $291M in rsETH, triggers $6.2B Aave withdrawal run

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Kelp DAO bridge exploit nets attacker $291M in rsETH, triggers $6.2B Aave withdrawal run

More coverage

Explore the topic

More on Exploit

Cross-chain exploits drain over $35M from AFX, Verus and B² Network in six hours, exposing bridge key compromises, validation flaws and governance weaknesses

Verus Ethereum bridge drained of $7.5 million in exploit via import function

AFX bridge exploit drains $24.15 million in USDC on Arbitrum, Blockaid says

Balance Coin ($BLC) collapses 99% after suspected 42DAO exploit causes $915K loss on BNB Chain

Allbridge Core pauses after $1.1M Solana flash-loan exploit manipulates USDC/USDT pool

Cascade moves swiftly after $1.3M exploit, collaborates with SEAL 911 and law enforcement to trace attackers

Cross-chain exploits drain over $35M from AFX, Verus and B² Network in six hours, exposing bridge key compromises, validation flaws and governance weaknesses

Verus Ethereum bridge drained of $7.5 million in exploit via import function

AFX bridge exploit drains $24.15 million in USDC on Arbitrum, Blockaid says

Balance Coin ($BLC) collapses 99% after suspected 42DAO exploit causes $915K loss on BNB Chain

Allbridge Core pauses after $1.1M Solana flash-loan exploit manipulates USDC/USDT pool

Cascade moves swiftly after $1.3M exploit, collaborates with SEAL 911 and law enforcement to trace attackers

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