Kelp Hack Drains Nearly $300M and Freezes rsETH Activity

[madmax]

Kelp has paused its rsETH smart contracts after a major exploit targeting its cross-chain bridge infrastructure. The attacker reportedly drained around $293 million by exploiting the adapter bridge contract, forcing the platform to halt activity across mainnet and multiple Layer-2 networks.

The stolen funds were quickly moved and partially converted into Ether, with links to a Tornado Cash-funded address raising further concerns about laundering. In response, platforms like Aave froze rsETH markets to limit further damage.

This incident highlights how vulnerable cross-chain infrastructure remains, especially as DeFi systems become more interconnected. Even a single exploit can cascade across multiple protocols.

[cryptobro]

this is another reminder that bridges are still one of the weakest points in DeFi

[cryptoenthusiast]

love how every exploit turns into a reminder thread about “security vs innovation” like we didn’t just have this exact conversation last week