Kelp DAO Hack Triggers $292M Theft and 30,766 ETH Freeze, Arbitrum Activates Emergency Measures

A major DeFi-related cyberattack disrupted Ethereum infrastructure as Kelp DAO was targeted, with a governance-backed action freezing 30,766 ETH to limit damage. Arbitrum, a Layer-2 network, implemented drastic emergency measures in response to the incident, while institutional investors continued to pour billions into the market despite the breach.

The attack on Kelp DAO led to the movement of 116,500 rsETH, equivalent to about $292 million, accomplished by exploiting a vulnerability in the LayerZero bridge. This amount represented roughly 18% of the token’s circulating supply, triggering immediate governance actions and hampering the project’s operations.

These events highlight ongoing security risks in cross-chain DeFi infrastructure and have prompted rapid countermeasures by network teams and governance bodies to contain fallout and safeguard investor capital.