Kelp DAO Hacked Due to LayerZero RPC Node Breach

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Kelp DAO confirmed a crypto hack tied to a security breach in LayerZero’s infrastructure. Two RPC nodes were compromised, and a third was subjected to a DDoS attack. Kelp’s systems were not involved in the incident. The DVN was configured using LayerZero’s default settings. The team has been collaborating closely with LayerZero since January 2024. Kelp is now focused on protecting users and assessing the impact alongside the DeFi community.

ChainCatcher report: Kelp DAO officially posted on X regarding the ongoing incident, stating that the breach occurred due to two LayerZero-hosted RPC nodes being compromised, while a third RPC node suffered a DDoS attack. This was an attack targeting LayerZero’s infrastructure, not Kelp’s own systems, which were not involved in building or operating that infrastructure. The 1/1 DVN configuration is the solution documented in LayerZero’s official guidelines and serves as the default setting for all new OFT deployments. Kelp has been operating on LayerZero’s infrastructure since January 2024 and has maintained open communication with the LayerZero team. During Kelp’s expansion to Layer2, the DVN configuration was discussed, and the default setting was explicitly confirmed as appropriate at that time. Kelp’s current top priority is safeguarding user interests and preventing the spread of risk throughout the DeFi ecosystem. The team is collaborating with stakeholders across the ecosystem to assess the impact, seek support, and explore all possible mitigation strategies.

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