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Kelp restaking platform exploited, $293M drained in attack
TL;DR
Kelp, a liquid restaking protocol, suffered a cyber attack that drained approximately $293 million in funds. The platform has paused its rsETH smart contracts while investigating the incident.
Key points
- Kelp was attacked, resulting in $293 million drained
- Suspicious cross-chain activity involving rsETH identified
- Kelp paused rsETH contracts for investigation
Mentioned in this story
Kelp
CyversrsETH
Kelp, a liquid restaking protocol, was the victim of a cyber attack on Saturday, causing the platform to pause smart contracts for its restaking token (rsETH), as it “investigates” the attack amid reports of hundreds of millions of dollars in losses.
“Earlier today, we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several Layer-2s,” the Kelp platform said in an X post.
The attacker exploited the rsETH adapter bridge contract, the software code that manages Kelp’s rsETH token, and drained the platform of about $293 million in funds, according to blockchain security firm Cyvers.
Source: Cyvers
The attacker used a Tornado Cash crypto mixer-funded address and has already converted about $250 million of the stolen funds to Ether (ETH), the native cryptocurrency of the Ethereum layer-1 blockchain network, Cyvers told Cointelegraph.
In response to the attack, decentralized finance (DeFi) platform Aave announced it had frozen rsETH markets on Aave V3 and V4. At least nine crypto protocols had exposure to the token and have frozen activity on their platforms in response, Cyvers said.
Q&A
What happened to the Kelp restaking platform?
The Kelp restaking platform was exploited in a cyber attack that resulted in a loss of around $293 million.
How did the Kelp platform's attacker exploit the system?
The attacker exploited the rsETH adapter bridge contract, which manages Kelp's rsETH token, to drain funds from the platform.
What actions has Kelp taken following the attack?
Kelp has paused its rsETH smart contracts across mainnet and several Layer-2s while investigating the suspicious activity.
