Kelp DAO Exploit Sends Shockwaves Across DeFi
A major security breach has shaken Kelp DAO after hackers exploited LayerZero RPC infrastructure and a DVN verification flaw to forge cross chain messages. They minted unbacked rsETH and drained 116500 rsETH from the Ethereum bridge in just 46 minutes. The impact is massive. Aave now risks nearly 230 million dollars in bad debt as attackers used fake collateral to borrow real assets. Arbitrum Security Council reacted fast and froze 30766 ETH worth 71 million dollars. Around 75700 ETH is still being moved through THORChain across multiple wallets. The incident raises serious questions about cross chain security today.