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KelpDAOExploitFreeze
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#KelpDAOExploitFreeze refers to the emergency actions taken after a massive security breach in KelpDAO, a liquid restaking protocol in the DeFi ecosystem. In April 2026, KelpDAO suffered one of the largest crypto exploits of the year, with attackers draining approximately $290–$300 million worth of rsETH tokens by exploiting a vulnerability in its cross-chain bridge infrastructure powered by LayerZero. � CryptoPotato +1 🔍 What Happened? The attacker manipulated the cross-chain messaging system, allowing them to mint and withdraw a large amount of unbacked rsETH. � Cybernews Around 116,500 rsETH (≈18% of supply) was siphoned and converted into ETH. � Binance The exploit quickly spread across multiple chains and DeFi protocols, turning into a cross-protocol contagion event. � CryptoPotato 🧊 Why the “Freeze”? To contain the damage: KelpDAO paused rsETH contracts across mainnet and Layer-2 networks. � CryptoPotato Major DeFi platforms like lending protocols froze markets and exposures involving rsETH. � CryptoPotato Emergency measures were triggered across multiple refers to the emergency actions taken after a massive security breach in KelpDAO, a liquid restaking protocol in the DeFi ecosystem. In April 2026, KelpDAO suffered one of the largest crypto exploits of the year, with attackers draining approximately $290–$300 million worth of rsETH tokens by exploiting a vulnerability in its cross-chain bridge infrastructure powered by LayerZero. � CryptoPotato +1 🔍 What Happened? The attacker manipulated the cross-chain messaging system, allowing them to mint and withdraw a large amount of unbacked rsETH. � Cybernews Around 116,500 rsETH (≈18% of supply) was siphoned and converted into ETH. � Binance The exploit quickly spread across multiple chains and DeFi protocols, turning into a cross-protocol contagion event. � CryptoPotato 🧊 Why the “Freeze”? To contain the damage: KelpDAO paused rsETH contracts across mainnet and Layer-2 networks. � CryptoPotato Major DeFi platforms like lending protocols froze
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