ChainCatcher report: On Monday, Kelp DAO announced that after five weeks of recovery following a $293 million attack by North Korea’s Lazarus Group on April 18, rsETH has been fully restored. Kelp DAO stated that the final batch of 20,373.7 rsETH has been sent to the LayerZero smart contract responsible for cross-chain transfers, marking the official completion of the operational phase of the rsETH restoration plan. Multiple crypto protocols contributed funds through the DeFi United initiative to support the restoration of rsETH backing. The first 25,000 rsETH were transferred on May 13, and withdrawals were reopened the following day. Currently, minting, redemption, and reward operations are fully functional. The attack triggered a ripple effect across the DeFi lending market, as the attackers used large amounts of stolen rsETH as collateral to borrow WETH on Aave, resulting in $1.9 billion in bad debt. Aave’s TVL dropped from $26.4 billion to below $14 billion and has since remained between $13.9 billion and $15.1 billion without full recovery. In April alone, there were 25 cryptocurrency hacks, resulting in total losses of $630 million.
Kelp DAO Announces Full Recovery of rsETH Following a $293M Hack
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Summary
Kelp DAO announced on Monday that rsETH has been fully restored following a $293 million hack by the Lazarus Group on April 18. The final 20,373.7 rsETH was transferred to LayerZero’s smart contract, concluding the recovery. On-chain data shows the first 25,000 rsETH was moved on May 13, with withdrawals resuming the following day. Minting and rewards are now active. The attack triggered a market shock, as the stolen rsETH was used on Aave to borrow WETH, resulting in $190 million in bad debt. Aave’s TVL fell from $26.4 billion to under $15 billion. On-chain analysis indicates TVL remains unstable between $13.9 billion and $15.1 billion. April saw 25 hacks totaling $630 million in losses.
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