LayerZero Identifies Exploit in Kelp DAO's Network

LayerZero has reported that an exploit in Kelp DAO's decentralized verifier network setup led to the theft of approximately 116,500 rsETH, valued at around $292 million to $293 million, from Kelp's bridge. According to NS3.AI, the attacker utilized the stolen rsETH on Aave, resulting in a reduction of the total value locked (TVL) by about $8.9 billion to $17.5 billion and creating approximately $195 million in bad debt. LayerZero indicated that initial evidence suggests involvement by threat actors linked to North Korea. In response, LayerZero announced it will cease signing or attesting messages for applications that maintain single-verifier setups.