Kelp DAO restores 116k rsETH after $292M exploit

Kelp DAO announced the completion of its rsETH recovery operation following the April 18, 2026 exploit that released about 116,500 rsETH from its LayerZero OFT bridge adapter. The final tranche of 20,373.72 rsETH was transferred to the adapter on May 25, closing the operational phase of the recovery plan and allowing minting, redemption, and reward distribution to resume.

The recovery involved gradually refilling the adapter from the Aave Recovery Guardian and the Kelp Recovery Safe. Aave confirmed that all rsETH markets are functioning normally and that the token’s backing has been fully restored. The exploit was attributed to a forged LayerZero packet and a change from a 2‑of‑2 to a 1‑of‑1 verifier configuration, which the attacker exploited. With the last batch sent, Kelp DAO is now monitoring the system while users can track the rsETH backing on a public dashboard.