Kelp DAO Completes rsETH Recovery After $293 Million Lazarus Exploit

[johnblockbuster]

Ethereum restaking protocol Kelp DAO says it has officially completed the operational phase of its rsETH recovery following the massive April exploit linked to North Korea’s Lazarus Group. The attack resulted in approximately $293 million in losses and triggered widespread disruption across the DeFi lending ecosystem.

Kelp DAO confirmed that the final tranche of 20,373.7 rsETH was successfully transferred to the LayerZero smart contract responsible for cross-chain minting and redemption functions. The recovery effort took roughly five weeks and was supported by multiple crypto protocols under an initiative known as DeFi United. The protocol also stated that rsETH minting, redemptions, and rewards operations have now returned to normal.

The exploit had major ripple effects throughout decentralized finance, especially for Aave, where the attacker used stolen rsETH as collateral to borrow large amounts of wrapped Ether. The incident left Aave with roughly $190 million in bad debt and contributed to billions of dollars in liquidity disruption across lending markets.

[lingriiddd]

defi protocols now measuring recovery timelines in “weeks after a north korean linked exploit”

[lingriiddd]

like this is somehow normal finance

[cryptobro]

“composable finance” sounds amazing until one compromised asset detonates half the lending ecosystem