News linked to both this project and an event.
that, according to official sources, AaveLabs has proposed restructuring the Aave DAO bug bounty framework into multiple specific subsystem programs, operating on the Immunefi, Sherlock, and Cantina platforms respectively. Core Aave V3, Core Aave V2, GHO, and non-liquidity protocol infrastructure will be covered by Immunefi; Aave V4 and the Aave App Stack will be covered by Sherlock; and Aave V3 on Aptos will be covered by Cantina.The proposal suggests adjusting the bounty scale for each system. The maximum reward for critical vulnerabilities in Core Aave V3 is $5 million, while the maximum reward for critical vulnerabilities in Aave V4 is $2.5 million. Additionally, the funding source for the Aave V3 bug bounty on Aptos will be transferred from Aave Labs to the Aave DAO. This ARFC proposal has currently been passed.
Odaily Odaily News Gate Research recently released its "April 2026 Cryptocurrency Market Review" report, indicating that the overall cryptocurrency market saw a volatile upward trend in April, with total market capitalization significantly higher than in March. BTC and ETH ETF trading volumes maintained high volatility overall. The report shows continued divergence in activity across major public chain ecosystems. Solana's daily transaction volume remained in the range of approximately 90 million to 110 million transactions, maintaining its leading position.Regarding trending sectors, the report notes that Pokemon TCG RWA has become one of the fastest-growing on-chain RWA sub-sectors, entering a second explosive growth phase in April. Major trading platforms saw monthly trading volumes exceed $220 million, with weekly revenue briefly approaching $6 million, setting new historical records. Meanwhile, Aave experienced its most severe liquidity crisis ever in April, with TVL outflows reaching tens of billions of dollars within a few days and net outflows exceeding $9 billion for the entire month.In terms of fundraising and security incidents, the Web3 industry completed 51 financing rounds in April, totaling approximately $834 million, with capital further concentrating on leading financial and infrastructure tracks. Among these, Payward ranked first for the month with a $200 million financing round. On the security front, Web3 security incidents in April resulted in losses of approximately $306 million, a month-over-month increase of about 858%, primarily driven by a single cross-chain infrastructure attack on Kelp DAO worth approximately $293 million. The report suggests that against the backdrop of a recovering market, on-chain activity and capital liquidity are both increasing simultaneously. However, the security risks associated with cross-chain infrastructure and high-leverage protocols remain worthy of continued attention.
According to Cointelegraph, a New York judge has postponed the hearing on Aave’s emergency motion to unfreeze approximately $71 million worth of ETH and ordered Aave and Gerstein Harrow LLP to submit additional case briefs. A new hearing is scheduled for June 5. The court noted that Aave previously failed to adequately explain why users’ funds would suffer “derivative losses” if the restraining order remained in effect. The assets in question are linked to the Kelp DAO hack, which involved approximately $293 million and was previously frozen by Arbitrum. The judge also directed both parties to further clarify several legal issues, including the applicable law governing the hacker’s transactions, the legal distinction between fraud and theft, the priority ranking of creditors’ claims, the applicability of constructive trust, and whether assets can be proportionally returned to victims.
Odaily News: Margaret Garnett, a U.S. District Judge in Manhattan, has approved Aave's asset recovery proposal, allowing the transfer of approximately $71 million in ETH previously frozen on Arbitrum and linked to North Korean-linked attacks, to a wallet controlled by Aave LLC, while preserving the legal claims of terrorism victim plaintiffs over the funds. The ruling also amended the earlier freeze notice against the Arbitrum DAO, permitting the transfer to be executed through an on-chain governance vote and exempting those who propose, vote on, or participate in the transfer from liability under the freeze order. The transfer is still subject to an official vote by Arbitrum's on-chain governance. (CoinDesk)
Odaily Odaily: Aave posted on the X platform stating that the second phase of the technical solution for the rsETH incident recovery has progressed. On May 6, eight positions of the hacker on Aave V3 were liquidated, and the recovered rsETH collateral has been transferred to the recovery guardian. The Arbitrum DAO has passed a proposal to return the previously recovered $71 million in ETH.Regarding the application for asset freezing filed by the plaintiff, the judge has approved Aave LLC's proposal, allowing the transfer of the $71 million in ETH to Aave LLC through an on-chain vote by the Arbitrum DAO. Subsequent plans include burning rsETH on Arbitrum and restoring the rsETH reserve. After the reserve is restored, withdrawals will be reopened, and the WETH Loan-to-Value (LTV) ratio on the Aave V3 Ethereum mainnet will be restored.
The Mantle community has approved proposal MIP-34, authorizing the Mantle Treasury to extend a loan of up to 30,000 ETH to the Aave DAO to address the non-performing loan impact on Aave V3 resulting from the rsETH cross-chain bridge security incident on April 18, 2026. Per the proposal, the loan term is up to 36 months, with an annual interest rate of LIDO + 1%; the borrower may repay early without penalty. Regarding risk control, Mantle will hold a first-priority security interest in the relevant collateral assets. Additionally, Aave will provide supplementary collateral comprising no less than $11 million worth of AAVE tokens and protocol revenue, and delegate 130,000 AAVE tokens to Mantle for governance participation.
According to The Block, the Arbitrum DAO voted to release 30,765.6 ETH (approximately $70 million), previously frozen, to support the DeFi United initiative—aimed at offsetting Kelp DAO’s $292 million exploit loss last month. The vote passed with 90.96% support (182.2 million votes). The attack was allegedly carried out by the North Korean Lazarus hacking group, which exploited a vulnerability in LayerZero’s OFT cross-chain bridge—a single-validator configuration—which allowed attackers to steal 116,500 rsETH and pledge most of the stolen assets as collateral on Aave, resulting in roughly $190 million in bad debt. DeFi United has secured contributions from multiple parties, including 30,000 ETH from Consensys and Joseph Lubin, a 30,000-ETH loan from Mantle, and 5,000 ETH from LayerZero.
Solv Protocol has announced the migration of over $700 million in tokenized Bitcoin assets to Chainlink's cross-chain protocol CCIP, and will gradually phase out LayerZero's bridging support across multiple chains. The migration involves core assets such as SolvBTC and xSolvBTC. Solv stated that the decision is based on the latest security reviews and recent cross-chain security incidents, and CCIP will become its standard cross-chain infrastructure. This move follows Kelp DAO's migration of approximately $290 million in assets to Chainlink, further strengthening the trend of "cross-chain infrastructure shifting toward security-first migration." (CoinDesk)
According to on-chain data platform Santiment (@SantimentData), as Bitcoin’s price reclaimed the $80,000 level, the ratio of bullish-to-bearish comments on social media rose to 1.37:1.00—the highest in nearly four months—signaling a notable surge in market optimism. However, Santiment cautions that historically, sharp increases in bullish sentiment often serve as warning signs rather than buy signals. When retail FOMO dominates social media discussions, traders tend to enter positions late in the trend, raising the likelihood of local tops, profit-taking, and sudden price volatility. Santiment notes that peak market euphoria frequently coincides with the onset of waning momentum. By comparison, following the Kelp DAO vulnerability incident in mid-April, social sentiment plunged into deeply bearish territory; the exit of “weak-handed investors” instead laid a healthier foundation for the current rally. With sentiment now having reversed dramatically, Santiment advises traders to remain vigilant against potential risks stemming from excessive leverage and overly concentrated positions.
Aave has announced the completion of the liquidation of the remaining rsETH position belonging to the Kelp DAO attacker. The related collateral assets will be transferred to the Recovery Guardian multi-signature wallet managed by DeFi United, to be used for restoring rsETH reserves and compensating affected users.This liquidation is part of the recovery plan following the previous $292 million attack incident. Aave had previously passed a governance vote to temporarily adjust the rsETH oracle price in order to create bad debt in the attacker's position and trigger liquidation. The relevant parameters will be restored upon completion of the liquidation. Previously, the attacker exploited the Kelp DAO cross-chain bridge based on LayerZero to forge 116,500 unbacked rsETH and borrowed ETH from protocols such as Aave and Compound. Currently, the recovery funds managed by DeFi United have exceeded $320 million.
Kelp DAO has announced the migration of its restaking token rsETH to Chainlink CCIP, citing enhanced security as the reason for this move. Previously, a cross-chain bridge built by Kelp DAO on LayerZero was attacked on April 18, with hackers stealing approximately 116,500 rsETH, valued at around $292 million, and using the assets as collateral to borrow WETH on Aave v3.Regarding the cause of the vulnerability, LayerZero previously stated that the issue stemmed from Kelp DAO using a single DVN verification path configuration rather than multiple independent verifications. Kelp DAO responded that this configuration was the default setting and that LayerZero had confirmed its security without flagging any related risks. LayerZero CEO Bryan Pellegrino subsequently denied this claim, stating that Kelp DAO had proactively modified the default multi-DVN configuration. Both parties continue to dispute responsibility for the incident. (Cointelegraph)
According to the official disclosure by Drift Protocol, all affected wallets impacted by the April 1 attack will receive Recovery Tokens—representing their verified losses and proportional claims against the Recovery Pool—where each Recovery Token corresponds to $1 of verified loss. The Recovery Pool’s initial funding is approximately $3.8 million, sourced from converting the protocol’s remaining assets into USDT. It will be further replenished through a portion of quarterly net exchange revenue, partner contributions, and up to $127.5 million in matching deployment from Tether. Once the Recovery Pool exceeds $5 million, users may begin redeeming Recovery Tokens; the redemption price will be calculated as the Recovery Fund’s value divided by the outstanding supply of Recovery Tokens. Drift stated that the Insurance Fund was unaffected by the attack; any release of related funds requires governance proposals and DAO voting. The exchange plans to relaunch in Q2 2026, focusing primarily on perpetual contracts and a select set of markets. Additionally, it will replace its programs and addresses, rotate keys, reconstruct its community multisig, remove durable nonces and the Earn product, and implement operational security upgrades.
According to The Block, Kelp DAO will abandon LayerZero and adopt Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its cross-chain infrastructure, along with Chainlink’s Cross-Chain Token (CCT) standard. Previously, in April, Kelp DAO suffered a cross-chain bridge attack totaling approximately $292 million; the attackers are suspected to be linked to North Korea’s Lazarus Group and exploited the single-validator configuration of the LayerZero-powered OFT cross-chain bridge to steal 116,500 rsETH. Chainlink states that its CCIP requires at least 16 independent node operators to validate cross-chain transactions.
According to Cointelegraph, DeFi protocol Aave filed an emergency motion in New York on Monday seeking to vacate a restraining notice issued by U.S. law firm Gerstein Harrow LLP, which prevents the Arbitrum DAO from transferring 30,766 ETH to victims of the Kelp exploit. Gerstein Harrow LLP served the restraining notice on the Arbitrum DAO last Friday, asserting that its client is entitled to over $877 million in damages under a default judgment against North Korea. The firm claims that the North Korean hacking group behind the April 18 Kelp exploit previously held these tokens and that its client therefore holds a legal claim to the relevant ETH.
According to Cointelegraph, U.S. law firm Gerstein Harrow LLP has filed an application with the U.S. District Court for the Southern District of New York seeking a temporary restraining order and three writs of execution to prevent the Arbitrum DAO from transferring 30,766 ETH (valued at approximately $73 million) frozen following the Kelp vulnerability. The firm argues that its clients obtained default judgments against North Korea in U.S. courts in 2010, 2015, and 2016, entitling them to roughly $877 million in compensation—and contends that the stolen ETH constitutes North Korean-linked assets that should be used to satisfy those judgments. Kelp DAO suffered a $292 million hack on April 18; the attacker was identified as TraderTraitor, a subgroup of the North Korean state-sponsored hacking group Lazarus Group. Aave Labs previously proposed unfreezing the seized funds and transferring them into the “DeFi United” fund to compensate rsETH holders—but this legal action by Gerstein Harrow may significantly delay compensation for victims. Members of the Arbitrum DAO community have criticized the move, arguing it shifts the burden of North Korea’s debts onto another set of victims, thereby exacerbating the original harm. Gerstein Harrow had previously pursued litigation related to the 2023 Heco Bridge hack involving Teth
Odaily Odaily PaperImperium, the head of MegaETH, disclosed on X platform that documents from the U.S. District Court for the Southern District of New York show that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million in ETH assets that were previously frozen during the KelpDAO hacking incident. In response, on-chain detective ZachXBT posted on X platform, stating that certain U.S. law firms are using his investigative work and on-chain forensics to help victims of some hacking incidents file legal claims. However, this practice may actually slow down or hinder victims from receiving compensation or recovering funds.ZachXBT added that in previous hacking incidents involving the Lazarus Group, such law firms often stepped in after on-chain fund tracking or freezing was completed, proposing subsequent legal actions that were weakly related to the crypto incidents themselves. Similar "free-riding claims" strategies were used in events like Harmony and Bybit. He called on the crypto community to establish a DAO to resist such practices.
: MegaETH lead PaperImperium disclosed on X platform a court document from the U.S. District Court for the Southern District of New York, showing that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million worth of ETH assets that were previously frozen in the KelpDAO hacking incident. The plaintiffs are attempting to use these funds to enforce outstanding judgment compensation in cases related to North Korea's involvement in terrorism, kidnapping, and other matters spanning several years. They have also filed a motion to serve legal notice to the Arbitrum DAO via alternative means, treating it as an accountable "partnership." The court document further notes that the Arbitrum DAO has a Security Council governed by ARB holders, which has the authority to take action in emergencies. As a result, relevant members who refuse to comply may face legal consequences such as contempt of court. Market observers believe that this case could set an important precedent for the U.S. judicial system to directly constrain DAO governance structures, further highlighting the compliance pressure faced by DeFi protocols under real-world legal frameworks.
According to Cointelegraph, the Arbitrum Committee voted to unfreeze $71 million worth of Ethereum to mitigate the $290 million loss caused by the Kelp DAO vulnerability.
Within less than three weeks, 12 protocols were hacked for over $606 million. The Drift incident resulted in losses of $285 million, and the Kelp DAO incident caused $292 million in losses—these two attacks together accounted for approximately 95% of the total losses.
: Arbitrum DAO has initiated a governance vote to release the previously frozen 30,766 ETH to support DeFi United, a recovery plan following the Kelp DAO attack.These assets, worth approximately $71.1 million, were frozen by the Arbitrum Security Council on April 20. They were originally funds transferred to the Arbitrum network by the attacker. If the proposal passes, it will become the largest single source of funding for the DeFi United plan.In the early stage of voting, 16.9 million ARB have already been cast in support. Currently, there are no opposing votes. The voting is set to continue until May 7.