KelpDAO Exploit Drains $280M+ From Ethereum and Arbitrum Lending Markets
ZachXBT flagged six attacker wallets funded through Tornado Cash. A minting flaw in KelpDAO's rsETH token left Aave V3 holding bad debt, sending the AAVE token down 10-13%.
Arbitrum has emerged as a leading Ethereum scaling solution — Layer 2 rollup architecture, transaction cost compression, Optimistic Rollup security model, on-chain activity growth, DeFi and gaming ecosystem expansion, sequencer dynamics, and the scaling roadmap for Ethereum throughput — analyzed through network usage data and adoption trends.
ZachXBT flagged six attacker wallets funded through Tornado Cash. A minting flaw in KelpDAO's rsETH token left Aave V3 holding bad debt, sending the AAVE token down 10-13%.
The attacker moved nearly all stolen ETH into Bitcoin in roughly a day and a half, while Arbitrum scrambled to freeze a smaller portion of the funds on its own network.
A 9-of-12 council vote moved 30,766 ETH tied to the KelpDAO exploit into a frozen wallet. It recovered funds, and it forced an uncomfortable question about what decentralization actually means on Layer 2.