The security crisis in the cryptocurrency market is deepening. While earlier allegations of a potential attack exceeding $100 million on KelpDAO’s liquid staking token surfaced, recent developments suggest the attack may be on a much larger scale.
According to on-chain data, one user had over $280 million in assets stolen from various DeFi protocols operating on Ethereum and Arbitrum. The addresses used in the attack were found to have been funded through Tornado Cash, a privacy-focused transaction tool.
Following these developments, Aave, one of the leading lending protocols in the DeFi ecosystem, intervened quickly. According to on-chain sources, Aave’s multisig guardian mechanism froze the rsETH holdings in lending markets to limit the risks. This move is considered an urgent measure to prevent the spread of potential losses.
As you may recall, approximately half an hour ago, following allegations of a security breach on the KelpDAO side, signals emerged indicating a “bad debt” (uncollectible debt) on Aave V3.
*This is not investment advice.
