Kelp DAO exploited for $292 million

Kelp DAO, a liquid restaking protocol, suffered a major exploit resulting in the loss of approximately $292 million worth of wrapped ether. The attack targeted Kelp's LayerZero-powered cross-chain bridge, where an attacker manipulated the system to issue new tokens without backing. This exploit has sent ripples through the decentralized finance (DeFi) ecosystem, with protocols like Aave facing potential losses due to the compromised collateral. The incident highlights the persistent vulnerabilities in crypto bridges, which are often reliant on trusted intermediaries and external data sources, making them susceptible to manipulation and systemic risk.