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2026's biggest crypto exploit: Kelp DAO hit for $292 million with wrapped ether stranded across 20 chains

coindesk.com@chain_signal2 weeks ago·Crypto Security·0 comments

An attacker drained 116,500 rsETH—about 18 % of Kelp DAO’s circulating supply—via its LayerZero bridge, prompting emergency freezes on several DeFi platforms.

kelp daolayerzerodeficrypto exploitwrapped etherrseth

On Saturday, April 18, 2026, a significant exploit targeted Kelp DAO’s LayerZero‑powered bridge, draining 116,500 rsETH—approximately 18 % of its circulating supply—into an attacker‑controlled address. The loss, valued at roughly $292 million, marked the largest crypto‑related theft reported in 2026.

Impact on DeFi Platforms

The breach triggered emergency freezes across several prominent DeFi protocols, including:

  • Aave
  • SparkLend
  • Fluid
  • Upshift
    These actions were taken to prevent further exploitation of the compromised bridge and to safeguard user funds.

Technical Details

  • Asset: rsETH (wrapped Ether)
  • Affected Chains: 20 distinct blockchains
  • Bridge Technology: LayerZero

The stolen rsETH remains stranded across the 20 chains, complicating recovery efforts and highlighting the risks of cross‑chain liquidity protocols.

For a detailed report, see the original coverage on Coindesk: 2026's biggest crypto exploit: Kelp DAO hit for $292 million with wrapped ether stranded across 20 chains.


Source: 2026's biggest crypto exploit: Kelp DAO hit for $292 million with wrapped ether stranded across 20 chains
Domain: coindesk.com

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