🚨 Summary of the KelpDAO rsETH $293M Hack: When Justin Sun Steps In as a #Negotiator to Rescue Whale Wallets and the DeFi System 🚨 . (Latest update: April 20, 2026) . In 2026, the DeFi world faced its worst nightmare when the popular restaking protocol @KelpDAO was hacked via a bridge, triggering massive bad debt on Aave. . Crypto magnate @justinsuntron of TRON could no longer stand by. Here’s the complete breakdown of everything that happened in one post 👇 . 1️⃣ Event Overview (Timeline & Value) . ▶️ Date of incident: April 18, 2026 . ▶️ Total loss: Approximately $293 million (approx. 9.346 billion THB), or 116,500 rsETH . ▶️ Proportion of loss: Represents 18% of all rsETH in circulation . ▶️ Vulnerability exploited: Hacker targeted the @LayerZero_Core-powered OFT Bridge (cross-chain bridge) . ▶️ Hacker sent fake messages to trick the bridge into believing real token transfers had occurred . ▶️ KelpDAO’s smart contract was deceived and minted fake rsETH tokens for the hacker . ▶️ The hacker deposited the fake tokens into Aave and immediately withdrew real WETH . 2️⃣ KelpDAO’s Urgent Statement & Response . After detecting irregular activity, KelpDAO immediately issued a statement: . “We detected suspicious cross-chain transactions involving rsETH and have paused all rsETH contracts on Mainnet and multiple L2s while we urgently investigate.” . Current Measures: . ✅ Working alongside LayerZero, @unichain, auditors, and global security experts to conduct RCA (Root Cause Analysis) . ✅ Urging users to follow only official @KelpDAO channels to avoid further scams . 3️⃣ Domino Effect (Chain Reaction) . 📍 KelpDAO (Origin) . 🔻 Not a direct smart contract exploit—attack occurred via “transport system” (bridge theft) . 🔻 TVL plummeted sharply; global rsETH transactions were immediately paused . 📍 Aave (Hardest Hit) . 🔻 Bad debt generated: $177–290 million (approx. 5.646–9.251 billion THB), as the hacker withdrew real funds and left behind fake tokens . 🔻 Safety Module: 28% of collateral from security providers was slashed (approx. $50 million or 1.595 billion THB) to cover losses . 🔻 Bank run triggered: Users withdrew over $5.4 billion (approx. 172 billion THB) in ETH, temporarily draining system liquidity—later withdrawers faced long queues . 📍 Broader DeFi Impact . 🔻 Other protocols—including Compound, Euler, and Morpho—immediately paused rsETH transactions . 🔻 Intense criticism emerged over E-Mode, which allowed excessive leverage (12–14x), accelerating the spread of losses during the hack . 4️⃣ The Secret Player: Justin Sun as the #Negotiator . On April 19, @justinsuntron, the crypto magnate, stepped in as a mediator. . 💬 Message to the hacker: . “Alright… how much do you want? Let’s talk. You stole $300 million (9.57 billion THB)—you can’t possibly spend it all. Don’t let the system collapse.”. ✅ Background: Justin himself is a major whale who had deposited funds into Aave (he had previously withdrawn as much as $154 million, or 4.912 billion THB); thus, he urgently stepped in to help contain the situation and prevent further market collapse. . 5️⃣ Situation Summary as of Today (April 20, 2026) . ⚠️ Aave: Other primary markets are operating normally, but rsETH/WETH remains frozen. . ⚠️ KelpDAO: Conducting an in-depth root cause analysis (RCA) in collaboration with global experts. . ⚠️ Stolen Funds: Converted to ETH and dispersed across multiple wallets; global security firms are tracking every movement. . ⚠️ Lesson Learned: This incident highlights that #cross-chain bridges are the most critical vulnerability, and leveraged borrowing in DeFi poses exceptional risk. . ⚠️ Stay closely updated. If there are any developments regarding fund recovery or a response from the hacker, we will report immediately. . @justinsuntron @trondao @TronDao_THA . #TRONGlobalFriends #TRON #KelpDAO #rsETH #DeFi #Aave #CryptoHack #LayerZero #JustinSun #CryptoNews #peterpriew #CryptoSociety #LearnShareGrow