- Following the KelpDAO exploit, nine protocols, including Aave, SparkLend, and Euler, suffered losses.
- LayerZero experts linked the incident to North Korean cybercriminals from the Lazarus Group.
A single exploit on KelpDAO’s rsETH cross-chain bridge has led to the shutdown of nine major protocols. DeFi, the emergence of bad debts on Aave and the shaking of the liquid restaking sector.
Previously edited Happy Coin News WroteIn a coordinated operation, the attacker siphoned 116,500 ETH, worth approximately $293 million, through the KelpDAO bridge. Within minutes, the stolen rsETH was deposited on the Aave platform as collateral for an ETH loan, creating a bad debt that the protocol must now repay. The attacker’s wallets were funded via Tornado Cash.
One exploit affected nine protocols simultaneously: Aave V3, SparkLend, Lido Earn, Mellow, Fluid, Compound, Euler, Upshift, Pendle PT and YT tokens, Beefy strategies.
Interconnectedness of liquidity restaking infrastructure DeFi meant that a single compromised asset would instantly spread across all protocols that accepted rsETH as collateral or were integrated with KelpDAO.
LayerZero experts linked the incident to North Korean cybercriminals from the Lazarus Group.
Preliminary data points to the involvement of a highly organized state actor, most likely the North Korean group Lazarus, or more specifically TraderTraitor, Wrote in LayerZero.
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