News linked to both this project and an event.
According to on-chain analyst Yujin (@EmberCN), ZRO—the native token of LayerZero, the cross-chain bridge exploited by hackers in today’s rsETH vulnerability incident—fell 18% on the day, dropping from $1.90 to $1.50. Twenty minutes ago, a Polymarket user with the address “greenrooibos” deposited 978,000 ZRO tokens to Binance, valued at approximately $1.57 million. These ZRO tokens were withdrawn from Binance two weeks ago, when they were worth roughly $2.04 million; this deposit thus corresponds to a loss of approximately $470,000.
Axelar Network stated that the hacker attack and theft of funds undermine users’ overall trust in blockchain systems and slow down the adoption of the global ledger it envisions. Axelar expressed its support for the LayerZero team in navigating this difficult situation and rebuilding trust. Regarding this approximately $290 million attack, Axelar emphasized that—pending final forensic findings—the incident once again highlights the need for multi-layered security in cross-chain bridge construction. This includes ensuring operational security for bridge operators, validators, and validating nodes; providing proper incentives and training; and removing validators whose technical capabilities are not adequately demonstrated. Additionally, operators must be sufficiently numerous, structurally heterogeneous, diverse, and geographically distributed to prevent ultimate control by a single entity.
According to on-chain analyst Onchain Lens (@OnchainLens), Kelp DAO lost approximately $294 million in the cross-chain bridge exploit. As a result, $ZRO dropped from $2 to $1.40. A whale holding a long $ZRO position on HyperLiquid was partially liquidated, incurring a loss of $2.88 million. The whale still holds the position, with an unrealized loss exceeding $750,000 and a total loss of approximately $28.98 million.
LayerZero tweeted that it is aware of the rsETH vulnerability incident and has been actively collaborating with the KelpDAO team on response and remediation efforts since the incident occurred, while continuing to monitor the situation. LayerZero stated that, aside from the rsETH-related incident, all other applications remain secure. Regarding the root cause of the incident, LayerZero is jointly investigating with SEAL_Org and other parties, and pledged to jointly publish a comprehensive post-mortem report with KelpDAO once all information has been gathered.
Odaily News The Ethereum restaking protocol Kelp has officially confirmed suspicious cross-chain activity involving rsETH. It has currently paused the rsETH contracts on the mainnet and multiple L2s and launched an investigation into the attack. It is also collaborating with LayerZero, Unichain, as well as audit firms and security experts to conduct a root cause analysis (RCA). A post-mortem report will be released subsequently.
According to CoinDesk, Kelp DAO’s LayerZero-based cross-chain bridge was attacked, with the attacker withdrawing 116,500 rsETH—worth approximately $292 million at current prices, or roughly 18% of its circulating supply. This incident has become the largest DeFi attack of 2026 to date. In response, Aave, SparkLend, and Fluid have frozen rsETH-related markets, and Lido Finance has suspended new deposits into its earnETH product. Kelp DAO stated it is jointly investigating the incident with LayerZero, auditing firms, and external security experts.
Odaily News On-chain data indicates that Kelp DAO's rsETH bridge protocol based on LayerZero is suspected of being exploited by hackers, resulting in a loss of 116,500 rsETH, valued at approximately $292 million.