Massive $290 Million Crypto Hack Sparks DeFi Market Turmoil
Crypto Hack Worth $290 Million Triggers DeFi Contagion Shock
Mint
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A major hack exploited a cross-chain bridge, draining approximately $293 million from decentralized finance (DeFi) infrastructure, impacting at least nine other platforms. The incident underscores the vulnerabilities of interconnected DeFi systems, prompting immediate responses from major protocols like Aave to mitigate further losses.
- 01Hackers exploited a cross-chain bridge, resulting in losses of approximately $293 million.
- 02The exploit affected at least nine other DeFi platforms due to interconnectedness.
- 03Kelp DAO paused its rsETH contracts to investigate the breach.
- 04Aave, the largest DeFi lending protocol, froze rsETH markets to prevent further damage.
- 05The incident highlights the risks of cascading failures in decentralized finance.
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Hackers targeted a cross-chain bridge on Saturday, draining nearly $293 million from decentralized finance (DeFi) infrastructure, marking it as the largest DeFi exploit of 2026. The attack involved the theft of about 116,500 rsETH, a token issued by Kelp DAO that represents 'restaked' Ether. Kelp DAO announced the suspension of rsETH contracts across its mainnet and several Layer 2 solutions while investigations are underway. The interconnected nature of DeFi protocols led to a contagion effect, impacting at least nine other platforms. Cyvers, a security firm, emphasized the need to address the risks associated with interconnected systems in DeFi, as assets like rsETH are commonly used across multiple services. Aave, which manages over $20 billion in locked assets, took immediate action by freezing markets related to rsETH to mitigate potential losses. The situation could have escalated further, as the protocol was reportedly just three minutes away from losing an additional $100 million. This incident surpasses a previous breach of the Solana-based project Drift, highlighting ongoing vulnerabilities in the DeFi sector.
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