What happened to Kelp DAO’s rsETH after the April hack?

Kelp DAO burned 117,132 rsETH tokens linked to the April exploit as part of a recovery process to restore full backing and resume withdrawals. The tokens were worth about $278 million and were tied to one of the largest DeFi exploits of 2026.

How much was stolen from Kelp DAO in the exploit?

Attackers drained roughly $293 million from Kelp DAO’s rsETH bridge infrastructure in April. The exploit was widely attributed to North Korea-linked Lazarus Group actors, although no public smart contract bug was identified.

Is Kelp DAO’s rsETH still fully backed after the hack?

Kelp DAO said rsETH on Ethereum mainnet and supported layer-2 networks remains fully backed despite the exploit. The protocol plans to progressively refill the burned rsETH supply over two weeks using recovery-controlled multisignature wallets.

When will Kelp DAO resume withdrawals?

Kelp DAO said withdrawals could resume “tentatively within 24 hours” after the first recovery tranche is returned to the smart contract. Deposits, bridging, redemptions and claims are also expected to restart once the contracts are reactivated.

What is rsETH and how does it work?

rsETH is Kelp DAO’s liquid restaking token built on top of Ethereum restaking infrastructure like EigenLayer. Users deposit ETH or liquid staking tokens to earn additional yields while still keeping a tradable token representing their position.

Why does the Kelp DAO exploit matter for DeFi investors?

The exploit highlighted how operational and bridge security risks remain a major weakness across decentralised finance. Even when smart contracts are audited, cross-chain systems and operational controls can still become attack vectors for hackers.

What security changes has Kelp DAO made after the exploit?

Kelp DAO said bridge security now requires four independent attestors and 64 block confirmations before transfers are validated. The protocol is also deprecating some layer-2 routes and migrating toward Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

What did OpenZeppelin say about the Kelp DAO hack?

Blockchain security firm OpenZeppelin said no publicly identified smart contract vulnerability caused the exploit. The company instead described the incident as an “operational” failure, which is a category of risk DeFi projects often underestimate.

Kelp DAO burns $278M hacker rsETH

Written by Liezl GambePublished May. 13 2026Last Updated May. 13 2026

Ethereum liquid restaking platform Kelp DAO said it has burned 117,132 rsETH tokens linked to April’s exploit as part of a recovery plan aimed at restoring withdrawals and stabilising the protocol.

The burned rsETH, worth about $278 million, will be progressively refilled over two weeks from Aave Recovery Guardian multisignature wallets into the LayerZero OFT adapter that manages cross-chain transfers for the liquid staking token.

Kelp DAO said rsETH across Ethereum mainnet and layer-2 networks remains fully backed at all times despite the exploit that drained about $293 million from the protocol earlier this year.

The protocol added that withdrawals could resume “tentatively within 24 hours” after the first tranche is restored to the smart contract, with deposits, redemptions, bridging and claims expected to restart once contracts are reactivated.

Blockchain security firm OpenZeppelin previously said no public smart contract bug had been identified in the exploit and warned the attack reflected operational security failures that decentralised finance platforms have historically underestimated.

Kelp said it has since completed a security hardening process requiring four independent attestors and 64 block confirmations for bridge security while also deprecating selected layer-2 routes and preparing a migration to Chainlink Cross-Chain Interoperability Protocol.

Kelp, which operates on Ethereum restaking protocol EigenLayer, reached a peak total value locked above $2 billion in September 2025 before declining about 26% to roughly $1.55 billion, according to DeFiLlama, as Ether prices slipped to a 12-day low near $2,260 on Tuesday.

At the time of reporting, Ethereum price was $2,296.16.