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The attack caused a 'cross-protocol contagion' that has impacted at least nine crypto protocols, blockchain security firm Cyvers said.
Kelp, a liquid restaking protocol, was the victim of a cyber attack on Saturday, causing the platform to pause smart contracts for its restaking token , as it “investigates” the attack amid reports of hundreds of millions of dollars in losses. “Earlier today, we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several Layer-2s,” the Kelp platform
The attacker exploited the rsETH adapter bridge contract, the software code that manages Kelp’s rsETH token, and drained the platform of about $293 million in funds,The attacker used a Tornado Cash crypto mixer-funded address and has already converted about $250 million of the stolen funds to Ether (rsETH markets on Aave V3 and V4. At least nine crypto protocols had exposure to the token and have frozen activity on their platforms in response, Cyvers said.
“This is exactly the kind of incident that highlights the risks of composability in DeFi,” Deddy Lavid, CEO of Cyvers, told Cointelegraph. Cointelegraph reached out to Kelp but did not obtain a response by the time of publication.
, the Drift team said they met the attackers at a “major” crypto conference and collaborated with them for several months before the attackers deployed malware on developer machines and compromised the platform. Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy
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