Massive $290 Million Crypto Hack Triggers DeFi Market Shock
Crypto hack worth $290 mn triggers DeFi contagion shock across platforms
Business Standard
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A significant hack exploiting a cross-chain bridge has drained nearly $300 million from decentralized finance (DeFi) infrastructure, impacting multiple platforms. The incident, involving the Kelp DAO's rsETH token, highlights the risks of interconnected DeFi systems and has led to immediate market freezes to mitigate further losses.
- 01Hackers exploited a cross-chain bridge, draining approximately $293 million.
- 02The incident is the largest DeFi exploit of 2026, affecting at least nine other platforms.
- 03Kelp DAO paused rsETH contracts to investigate the breach.
- 04Aave, a major DeFi lending protocol, froze markets related to rsETH to prevent further damage.
- 05The situation was narrowly contained, preventing an additional loss of $100 million.
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On Saturday, hackers executed a major breach of decentralized finance infrastructure, draining nearly $293 million from the Kelp DAO's cross-chain bridge. The exploit targeted rsETH, a token representing 'restaked' Ether, and has been identified as the largest DeFi exploit of 2026. Kelp DAO announced it paused rsETH contracts across multiple platforms to investigate the suspicious activity. The interconnected nature of DeFi protocols means that when one asset fails, it can trigger a cascade of issues across multiple platforms. Security firm Cyvers reported that at least nine other platforms were affected by this breach. In response, Aave, the largest DeFi lending protocol with over $20 billion in locked assets, froze markets related to rsETH to limit further damage. The incident underscores the vulnerabilities of interconnected DeFi systems, as highlighted by Cyvers Chief Executive Deddy Lavid. Fortunately, a quick response prevented an additional $100 million in losses, showcasing the urgent need for enhanced security measures in the DeFi space.
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