The $292 million KelpDAO exploit is among the largest cryptocurrency losses of 2026. The impact of this attack on user trust was widespread, resulting in a $13.5 billion drop in the total DeFi value locked (TVL). However, recent developments indicate a return in market confidence.
Investors move to accumulate rsETH as KelpDAO resumes operations
On April 18, attackers exploited a vulnerability in KelpDAO’s LayerZero cross-chain bridge, resulting in the theft of 152,577 rsETH, worth $292 million. According to A a report From analytics firm Santiment, the day also saw a net inflow of 563 rsETH, worth $1.1 million, to exchanges. Santiment analysts explain that market reaction is expected, as the exploit has raised concerns about the safety of KelpDAO and RESTH. Therefore, investors moved their holdings to exchanges to sell or exchange them for other assets, for example, stablecoins, thus reducing their exposure to the negative effects of the hack.
💸 On April 18, the infamous day of the Kelp DAO exploit, Santiment data showed a significant spike in $rseth Moving to exchanges, with a net inflow of around +563 rsETH. This reaction made sense because traders were feeling uncertain about the safety of… pic.twitter.com/2ADQe6iskn
– Santiment Intelligence (@SantimentData) May 16, 2026
After the hack, she was there Multiple recovery efforts, Including coordinated busts by KelpDAO, Abritrum and Aave of hacker sites on their own platforms. In particular, Aave DAO has also issued donations alongside DeFi platforms such as EtherFi, Lido, and Ethena. On May 15, KelpDAO announced the resumption of rebroadcast activities, including withdrawals, bridging, and protocol operations. Santiment noted that this announcement was shortly followed by a net outflow of approximately 435 rsETH ($936,000) from the exchanges.
In line with typical market dynamics, this influx indicates growing investor confidence in rsETH following the recovery and deregulation process. There is now a clear shift for rsETH away from exchanges and into self-custodial wallets, staking platforms, and DeFi protocols.
THORChain suffers $11 million hack
In other news, decentralized liquidity protocol THORChain was hit by an attack that resulted in $10.8 million in losses, according to a report. Independent investigator on the series, ZachXBT. The exploits occurred across four blockchains, including Bitcoin, Ethereum, Binance Smart Chain (BSC), and Base.
As a cross-chain exchange platform, THORChain allows direct swaps between various blockchains, and has previously been used as a money laundering network by bad actors and hackers. After the latest exploit, WuBlockchain Reports The protocol administration halted trading and issued a global emergency alert.
Exploits and hacks remain a major security concern for cryptocurrency users. according to Devillama Today, total losses from these harmful activities in 2026 now stand at $823.9 million. At press time, the total cryptocurrency market cap is $2.57 trillion, down 2.74% over the past day.
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