Kelp DAO LayerZero Cross-Chain Bridge Exploited; 116,500 rsETH Worth $292M Drained

CoinDesk reported that Kelp DAO's LayerZero-based cross-chain bridge was exploited, allowing an attacker to move 116,500 rsETH valued at about $292 million at current prices, roughly 18% of the token's circulating supply. The breach is the largest DeFi attack recorded so far in 2026. Following the incident, Aave, SparkLend and Fluid froze rsETH-related markets, while Lido Finance paused new deposits into its earnETH product. Kelp DAO said it is working with LayerZero, auditing firms and external security specialists to investigate.