#kelpdaoexploitfreeze KelpDAO exploiter just got $71M frozen – $DEFI fights back
Big news in the KelpDAO saga. Arbitrum's Security Council just froze $71 million from the hacker.
What happened:
The attacker drained $292M from Kelp's bridge on April 18 by exploiting a weak 1-of-1 verification setup. But now Arbitrum stepped in. At 11:26 PM ET on April 20, they moved 30,766 $ETH from the exploiter's address to a frozen wallet that only governance can touch.
Why this matters:
This recovers about a quarter of the stolen funds. And here's the interesting part – the Council acted with input from law enforcement about the exploiter's identity. North Korea's Lazarus Group is the prime suspect.
The messy part:
Kelp and LayerZero are still blaming each other. LayerZero says Kelp's 1-of-1 DVN config was the problem. Kelp says LayerZero's RPC infrastructure got hacked. Meanwhile, Aave is sitting on $124M to $230M in potential bad debt from all this.
My take:
A $71M freeze is huge. But it's only 25% of the total. And the blame game between protocols isn't helping anyone.
Are you still trusting DeFi after this? 👇
Educational only. Not financial advice.