馃寜 Kelp DAO Bridge Exploited for $292M Through Forged Cross-Chain Message
馃寜 Kelp DAO Bridge Exploited for $292M Through Forged Cross-Chain Message
馃毃 Another bridge falls
Kelp DAO's LayerZero bridge was exploited for $292 million after an attacker forged a cross-chain message and minted 116,500 rsETH from nothing. The fake tokens were used as collateral to drain real ETH from lending protocols.
The emergency multisig paused operations 46 minutes later, but the funds were already gone.
This follows a similar pattern to the recent Hyperbridge exploit where attackers minted fake tokens and drained liquidity pools.
The core vulnerability: bridges depend on trusting messages between chains. When that trust layer fails, there's no safety net.
Native asset protocols like THORChain avoid this entirely - no minting, no wrapping, no third-party validation. Real assets move between chains, validated by the network itself.
How many bridge exploits before the industry accepts that wrapping assets through third parties is the vulnerability, not the exception? Today a third-party Polkadot bridge (Hyperbridge) was exploited. The attacker minted 1 billion fake $DOT on Ethereum out of thin air, dumped
BRIDGED POLKADOT JUST GOT EXPLOITED An attacker exploited a third-party bridge to mint 1 Billion DOT tokens on Ethereum. They sold them straight into the liquidity pool, removing over $240K in ETH across multiple transactions. Track the attacker on Arkham using the link below:
Another bridge hack another $292 million gone. An attacker forged a cross-chain message on Kelp DAO's LayerZero bridge minted 116500 rsETH out of thin air and used them as collateral to drain real ETH from lending protocols. The emergency multisig paused everything 46 minutes
Due to the KelpDAO exploit, the attacker deposited $RSETH into #Aave to borrow $ETH, creating bad debt on #Aave. Many whales have already rushed to withdraw their $ETH from #Aave. $ETH Utilization Rate on Aave has now reached 100%.
Today鈥檚 Hyperbridge exploit is a reminder of bridge risks. Hyperbridge is a separate bridge to Ethereum and not the Polkadot blockchain. The Polkadot relay chain and native DOT remain completely safe. @patriotsounds for @THORCommunity breaks down bridges vs THORChain鈥檚
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