The cryptocurrency hack update surrounding Aave and KelpDAO caused the market to move dramatically. According to a recent investigation, approximately $292 million was allegedly lost in a complex minting and borrowing deal. It pushed the price of AAVE down more than 10% today as the price of ETH also fell due to KelpDAO’s rsETH engagement.
Another cryptocurrency hack drains $280 million from the market
On Telegram, Crypto Investigator ZachXBT open KelpDAO could face a vulnerability worth more than $290 million. Based on the information shared, the attacker minted between $280 million and $300 million worth of rsETH, a liquid re-staking token on EigenLayer.
The rsETH minted on Aave V3 was then collateralized to borrow huge amounts of ETH and WETH. The attacker then routed these funds through Tornado Cash to cover the transaction trail, according to the on-chain trace Encryption tools.
Onchain data shows that hackers drained 116,500 rsETH. The value of the stolen assets is estimated at approximately $292 million, according to current market prices.
At 17:35 UTC, the transaction occurred with the wallet name associated with the attacker called lzReceive on LayerZero’s EndpointV2 contract. The call prompted KelpDAO’s bridge contract to release 116,500 rsETH to another address linked to the attacker’s address.
Reports estimate that Aave V3 now could be vulnerable to approximately $177 million in bad debt. The incident has cast doubt on the protocol’s safeguards and risk settings.
KelpDAO and Aave protocols have issued an official statement
Hours after the incident, KelpDAO released an official statement. “Earlier today, we identified suspicious cross-chain activity involving rsETH,” the KelpDAO team wrote on
They added that they are working with LayerZero, Unichain, their auditors and senior security experts at RCA. “We will keep you updated as we learn more about this situation,” the team concluded. The situation is as alarming as it was before Drift Protocol has encountered an exploit On April 1, it was valued at more than $280 million.
Aave also wrote: “rsETH markets are frozen on Aave V3 and Aave V4. Aave contracts are not being exploited and this is an exploit related to rsETH.” He also noted that if the protocol accumulates bad debts as a result of this incident, they will explore ways to make up the deficit.
AAVE price drops by more than 10%
After the KelpDAO cryptocurrency hack update, the market response was immediate. the AAVE token price It is down 10.27% to $105.73 at the time of writing on Saturday, April 18. The chart shows that there was a sharp decline during the day, which was caused by panic selling. Meanwhile, the price of Ethereum fell by about 3% in the same time frame.
The impact on AAVE comes as KelpDAO’s rsETH is powered by Aave V3 on Ethereum. As per the 2025 integration, it has enabled rsETH depositors to earn more Kelp Miles and EigenLayer Points. However, the recent hack has made things complicated as Aave v3 now faces huge bad debts.
In a separate update today, RAVE coin is also struggling With pump and dump claims. These incidents shook the cryptocurrency market as protocols and exchanges launched investigations to mitigate the risks.
